SINGAPORE, April 14 Reuters The dollar headed for its longest stretch of weekly losses in almost three years on Friday, as traders ramped up expectations of an imminent end to the U.S. Federal Reserve39;s ratehike cycle following signs that inflation may be cooling.

Data on Thursday showed U.S. wholesale prices, as measured by the producer price index PPI, fell by the most in nearly three years last month, a day after data showed the consumer index CPI was also softening as expected.

The dollar index , which measures the performance of the U.S. currency against six others, slid to a roughly oneyear low of 100.78.

It was last down 0.1 at 100.90, and was headed for a weekly decline of more than 1, its steepest drop since January. This would mark a fifth straight weekly loss, the longest such stretch since July 2020.

The CPI rise was close to expectations, so it39;s a significant market reaction for what was a fairly consensus outcome and I think that is a measure of how negative sentiment is on the dollar at the moment, RBC Capital Markets chief currency strategist Adam Cole said.

Its kind of hard to fight that, even if you dont really agree with it, which we dont, he said.

RBC Capital Markets have a yearend target of 1.03 for the eurodollar pair, which on Friday, was trading around 1.1061, up 0.1 on the day and at oneyear highs.

Out of the G10 currencies, investors hold the largest bearish position in the dollar against the euro.

Weekly data from the Commodity…