12:11 PM EDT, 05/31/2024 (MT Newswires) -- The US dollar was on course for its first monthly decline of 2024 in North American trade on Friday after inflation figures left the earlier hawkish repricing of the Federal Reserve interest rate outlook appearing to have run its course.

The ICE US Dollar Index was on course to register a 1.7% decline for May on Friday following recovery rallies in the euro, pound sterling and Swedish krona, which offset losses for the Japanese yen, Swiss franc and Canadian dollar.

The greenback fell against all G10 peers except the Swiss franc, Japanese yen and Canadian dollar in May, while also ebbing against much of the broader G20 basket including the Russian rouble, Polish zloty, South African rand and Turkish lira.

It still remained the best performing G20 currency of the year on Friday but the dollar softened throughout the month after market-implied measures of expectations for the Fed Funds rate were halted in their year-to-date rally.

The earlier hawkish repricing of the outlook for rates stalled after Federal Reserve Chair Jerome Powell appeared to rule out any fresh or further increase early in the month, while also signaling that rate cuts would still be possible this year under certain scenarios.

Hopes of rate cuts were kept alive when US consumer price inflation ebbed in MoM terms in the mid-month release of April data, while the greenback was bogged down further on Friday when the core PCE price index also fell in MoM terms.