The Dollar was on track for its longest run of weekly losses in close to three years on Friday, as traders increased expectations of a prompt end to the Fed's rate hiking cycle on indications inflation may be cooling down.

According to data published on Thursday, the US producer price index (PPI) declined by the most in close to three years in March, a day after data revealed the consumer index was falling, as forecast.

The Dollar index, measuring the greenback against six rivals, declined to a one-year low of 100.78.

At the time of writing, the Dollar was down 0.1% at 100.90 and on track for a fall of more than 1%, the sharpest drop since January, Reuters reports. This would signify a fifth consecutive weekly loss, the longest run since July 2020.

"The CPI rise was close to expectations, so it'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," according to RBC Capital Markets chief currency strategist, Adam Cole.

"It's kind of hard to fight that, even if you don't really agree with it, which we don't," he added.

RBC's year-end target for the Euro/Dollar is $1.03, which was trading at $1.1058 on Friday, edging up 0.1% on the day and at one-year highs.

Money managers maintained a $19.631 billion long position in the Euro whilst holding short positions against the Yen, Pound, Canadian, Australian and New Zealand Dollars, as well as the Swiss Franc, the Reuters report adds.

"The easiest way to express a Dollar-negative view has been with the Euro," said Ray Attrill, head of FX strategy at the National Australia Bank.

In addition, Sterling rose to a 10-month high of $1.2545 previously in the day and, at the time of writing, stood at $1.2512. Whereas against the Euro, it moved down 0.2% at 88.39 pence.