SINGAPORE—The euro held below parity on Friday as investors eyed a potential slowdown in future rate hikes by the European Central Bank, while the yen was on track for its best week in over two months ahead of a key central bank policy decision.
The euro was last 0.05 percent lower at $0.9960, following a more than 1 percent slide overnight, after the ECB raised rates by 75 basis points, as expected, but took a more dovish tone on its rate outlook.
The central bank dropped a reference to increasing rates “over the next several meetings” that had been in its September statement, which traders took to mean that a series of large rate hikes was nearing an end….