SINGAPORELONDON, Nov 24 Reuters The dollar slipped on Friday as investors bet U.S. interest rates have peaked, while the yen edged higher after Japan39;s core consumer price growth picked up, reinforcing views that the Bank of Japan BOJ may soon roll back monetary stimulus.

With U.S. markets closed on Thursday for the Thanksgiving holiday and due for a shorter Black Friday trading session, currencies are likely to trade narrowly but with some volatility as liquidity is expected to remain thin.

The dollar index , which measures the U.S. currency with six peers, eased 0.077 to 103.69, staying close to the twoandahalf month low of 103.17 it touched earlier this week.

The index is down 2.8 for the month, on course for its weakest monthly performance in a year on growing expectations the Federal Reserve is done raising interest rates and could start cutting them next year.

Markets have dialled back expectations of Fed rate cuts in 2024, with futures now showing a 25 chance that it will cut its target rate at the March 2024 policy meeting, according to CME Group39;s FedWatch tool, compared with a 33 chance last week.

Jefferies strategist Mohit Kumar said the Fed and the European Central Bank will likely cut rates around June and September, while the Bank of England could move around May and August, possibly becoming the first central bank to cut rates.

Last week we had highlighted that the market was pricing in the first rate cut from the Fed, ECB and BoE by June 2023……