Stocks rally, dollar dips further on easing rate expectations

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Investors are now betting the Fed will hike rates 25 basis points at its May gathering but possibly hold after that.

With the Fed tipped to be close to the end of its tightening cycle, the dollar has retreated against its major peers and is sitting at a one-year low against the euro.BEIJING - Asian equities rose and the dollar dipped further Friday after fresh data showing continued slowing of inflation fanned hopes the Federal Reserve is nearing the end of its long-running campaign of interest rate hikes.

A higher-than-forecast reading on jobless claims added to the positive mood, which helped send Wall Street's three main indexes rallying, including a two percent advance for the Nasdaq. This week's data has reassured investors that inflation is coming down and that the economy could be heading for a soft landing, even though minutes from the Fed's March policy meeting revealed some officials see a mild recession by the year's end.

"And as we move into the seventh-inning stretch, where arguably much could happen between now and the final pitch, the combination of progress on inflation and the softer labour market has been encouraging.

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