Asian Currencies Muted, Dollar Set for Weekly Fall as Fed Rate Cut Bets Grow

Asian currencies remain muted, while the dollar is set for a sharp weekly fall as weak labor market data fuels bets of the Federal Reserve cutting interest rates. The yen is set for its best week against the dollar in four months, with bets that the Federal Reserve is done raising rates leading to a decline in U.S. Treasury yields and the dollar. Asia-Pacific markets are expected to decline as a mid-week rally sparked by hopes of cooling U.S. inflation loses momentum.