The yen briefly weakened past the closely watched 145 per dollar level on Friday although traders' fears of intervention by Japanese authorities kept it in check, while the dollar was also strong more broadly ahead of U.S. inflation data.

Barring unexpected interventions, the day's main event for FX markets is the U.S. personal consumption expenditure price index, which will be released at 0830 EDT (1230 GMT) and will give the latest indicator of whether prices are slowing in the world's largest economy.

Thursday data showing the resilience of the U.S. economy suggested the Federal Reserve has a cushion to raise interest rates further if inflation data requires it, and U.S. benchmark 10 year yields rose 14 basis points on Thursday as a result, their most since late March.

FX markets followed suit and the dollar index rose 0.35% on Thursday as the U.S. currency made ground on the euro, which dropped 0.45% .

Markets were steadier on Friday with the euro down 0.15% at $1.0847 near a two-week low, and sterling was up 0.3% at $1.2648, helped by a tick up in British government bond yields and just off the previous day's two-week low.

The pound is one of the best performing developed market currencies in the second quarter up, 2.5%, while the dollar index, which tracks the unit against six major peers, is up 0.8% on the quarter, set for its first quarterly gain since the third quarter of 2022.

The dollar's gains also helped it to as high as 145.07 yen in Asia trade Friday, its highest in seven months, and into territory at which Japanese authorities intervened to prop up their currency last autumn.

However, the dollar failed to hold those gains and was last flat on the day at 144.88 yen.

Source : Reuters