The dollar remained on course for a weekly loss on Friday, bringing an end to a six-week winning streak, as investors braced themselves for the U.S. jobs report set to be released later in the day. This data on the labor market is expected to provide an indication of the Federal Reserve’s next interest rate policy decision as it continues its battle against inflation.
Measuring the greenback against a basket of major currencies, the dollar index slipped by 0.05% to 103.58; contributing to a weekly loss of 0.53%. The dollar fell by 0.08% to 145.405 against the Japanese yen, while China’s yuan hit its highest level since August 11 at 7.2392 per dollar. The dollar remained relatively unchanged against the euro at $1.08455 following a 0.74% decline on Thursday.
Following a wave of employment and inflation data this week which has been on the weaker side, the jobs report is expected to lower expectations of a Fed rate hike in September. Markets are pricing a 12% chance for rate hikes, down from 18% a week ago.