Dollar steady ahead of jobs data; yen hits two-week high
dollar held steady against peer currencies on Friday after rebounding from a two-week low, as traders braced for a key jobs report due later in the day and grew cautious over tensions in the Middle East.
The yen, while still close to the 152 range, hit a two-week high against the greenback as safe-haven bids and fresh warnings from Japanese authorities buoyed the currency.
Overall, however, major currencies were looking rather subdued on Friday before the March nonfarm payrolls report.
The dollar has had a turbulent week, falling from a five-month high to a two-week low after an unexpected slowdown in U.S. services growth supported expectations of bringing interest rates down.
Comments overnight from Minneapolis Federal Reserve President Neel Kashkari that rate cuts might not be required this year if inflation continues to stall helped the dollar rebound from the dip.
Still, officials including Fed Chair Jerome Powell have largely continued to focus on the need for more debate and data before interest rates are cut.
The jobs data, as well as incoming inflation readings next week, will be important in shaping the outlook for the Fed's April 30-May 1 and June 11-12 policy meetings. Economists expect 200,000 jobs were added in March.
«Markets will likely be sensitive to any surprise in the jobs data today to assess the path of monetary policy from here,» said Charu Chanana, head of currency strategy at Saxo.
«Given the lack of coherent Fed messaging means data-dependency remains the order of the day.»
The
