The U.S. dollar fell from its four-week high on Friday as investors geared up for the incoming U.S. Jobs Report, which is expected to give an indication of what the Federal Reserve will do with regard to its interest rate policy going forward.
The U.S. dollar index, measuring the greenback against a basket of six major currencies, declined by 0.06% lower to 102.39. On Thursday, the index reached its highest level since July 7 at 102.84.
Sterling rose 0.19% to $1.27335, with the euro edging 0.05% higher against the greenback to $1.09545. The dollar slipped slightly to 142.40 yen as long-term Treasury yields fell from Thursday’s nearly nine-month high at 4.198% in Tokyo.
While investors await signs of the Federal Reserve’s intentions going forward, the European Central Bank signaled that it may pause its interest rate hikes in September as inflation continues to cool.