New york: The US dollar is heading for its biggest weekly drop in four months, as trading volumes shrink because of the US Thanksgiving holiday – pushing traders to focus on next year’s outlook, while the Federal Reserve (the US central bank) appears to be the only party likely to take interest-rate-cut steps.

According to Qatar News Agency, in currency markets, the Japanese yen rose 0.4 percent to 155.87 per dollar in Asian trading, while the euro climbed above USD 1.16. The New Zealand dollar also rose to a three-week high of USD 0.5728, gaining about 2 percent, while the Australian dollar strengthened after inflation data that came in higher than expected.

The Chinese yuan stood at 7.08 per dollar, while the British pound reached its highest level since late October at USD 1.3265, heading for its biggest weekly rise since last August. Meanwhile, the US Dollar Index – which measures the performance of the US currency against a basket of major currencies – was steady at 99.433 points, after retreating from its six-month high reached a week earlier, and is heading toward its largest weekly drop since July.