Dollar strength on 39;borrowed time39; as US rates peak
Even yen eyes weekly rise vs USD
Oil slide weighs on commodity currencies

SINGAPORE, Nov 17 Reuters The dollar was headed for its largest weekly drop for months against the euro, yen and franc on Friday, as investors sold in anticipation of almost 100 basis points of U.S. interest rate cuts next year.

At 1.0854 to the euro , the dollar has shed 1.6 for the week, its steepest fall since midJuly. It is also down 1.6 for the week to 0.8882 Swiss francs and has even lost 0.6 to trade at 150.53 on the outoffavour yen .

Oil hit fourmonth lows on Thursday and Walmart said it will cut prices, adding to the disinflationary pressures that data this week showed had steadied U.S. consumer prices and convinced investors inflation is in retreat and rate increases are over.

Thursday39;s batch of weak U.S. economic data also reinforced that stance. Futures markets have priced in 98 basis points of Fed rate cuts next year, compared with 73 bps a week ago.

While the amount of easing factored in appears aggressive, the direction of travel looks right, said Peter Dragicevich, strategist at crossborder payments firm Corpay in a note.

The U.S. inflation pulse has turned, and the negative consequences of past policy tightening is starting to manifest, he said.

As the next Fed easing cycle comes into view, U.S. yields move lower, and U.S. growth comes back to the pack, we are looking for the USD to gradually deflate over the next…