A gauge of the dollar dipped for the first time in four days with Federal Reserve officials set to enter a blackout period ahead of this month's policy meeting.

The Bloomberg Dollar Spot Index declined 0.1% after rising 1% in the last three days. The blackout period that limits Fed officials' public communication begins on Saturday.

Overnight-indexed swaps signaled a 40% chance of a US rate hike by November. August inflation data due next week and a statement from the Sept. 19-20 Fed meeting may tip the scales.

The yen briefly jumped as Japan's Finance Minister Shunichi Suzuki said he will appropriately address excessive moves in the foreign exchange market without ruling out any options.

"The relativities of incoming US, Europe and China data remain in the driving seat as the principal US dollar driver," said Ray Attrill, head of FX strategy at National Australia Bank in Sydney. "The Suzuki comments made the dollar-yen market a bit twitchy, but it will likely need to be much closer to 150 before we see intervention."

USD/JPY retreated 0.1% to 147.18 after dropping as much as 0.5% earlier.

"The yen may enter a period of heightened volatility, rather than one way moves, because we consider the risk of intervention to support the yen is rising," Joseph Capurso, head of international and sustainable economics at Commonwealth Bank of Australia, wrote in a research note.

AUD/USD rose 0.2% to 0.6391, trimming a weekly decline to 1%.

Source : Bloomberg