The dollar dipped on Friday but traders were largely keeping to the sidelines in both the currency and U.S. Treasury markets as they looked to U.S. nonfarm payrolls data later in the day for potential catalysts.
Friday's closely-watched jobs report comes on the heels of a run of resilient U.S. economic data which has reinforced the Federal Reserve's hawkish messaging of higher-for-longer rates and sent the greenback and U.S. Treasury yields surging.
The dollar index , which earlier in the week hit a roughly 11-month high of 107.34, last settled at 106.37, but remained on track for 12 straight weeks of gains.
A broad selloff in world government bonds also stabilised on Friday, with the 30-year U.S. Treasury yield last at 4.900%, after spiking above 5% for the first time since 2007 earlier in the week.
Bond yields move inversely to prices.
The benchmark 10-year Treasury yield last stood at 4.7269%, while the two-year yield settled at 5.0267%.
The pause in the dollar's rally has also provided a much-needed reprieve for the yen , which last bought 148.48 per dollar.
Its sudden-but-brief spike of about 2% to 147.30 per dollar on Tuesday stoked speculation that Japanese authorities could have intervened in the currency market to shore up the battered yen, though data from the Bank of Japan (BOJ) seemed to suggest otherwise.
Elsewhere, the euro slipped 0.03% to $1.0546 and was on track for a 0.25% decline for the week, extending its run of losses into a 12th week.
Sterling edged 0.03% lower to $1.2188 and was likewise headed for five straight weeks of losses, struggling against a dominant dollar.
The Australian dollar fell 0.05% to $0.6367, while the New Zealand dollar gained 0.11% to $0.59695, after both Antipodean currencies tumbled earlier in the week on the back of their respective central bank decisions.
The RBA on Tuesday held interest rates steady for a fourth month, with the Reserve Bank of New Zealand following suit a day after, both in line with expectations, though their messaging came in less hawkish than expected.
The Aussie was eyeing a weekly drop of more than 1%, while the kiwi was headed for a more than 0.5% fall.
Source : Reuters
