Dollar Steady Ahead of U.S. Jobs Data, Yen Gains on Rate Hike Bets

The U.S. dollar held steady on Friday as traders awaited key U.S. payroll figures, while the yen climbed to a nine-week high on expectations of further rate hikes in Japan.

Key Currency Movements

• Dollar Index: Flat at 107.63, down 2.1 percent from Monday’s high of 109.88, as global trade tensions eased.
• British Pound: Rose 0.22 percent to $1.2465 after falling 0.54 percent on Thursday, when the Bank of England cut rates to 4.5 percent and downgraded growth forecasts.
• Euro: Edged up 0.1 percent to $1.0393.
• Japanese Yen: Strengthened as the dollar fell below 151 yen for the first time since December 10, before recovering slightly to 151.77.

Focus on U.S. Jobs Data

Markets are closely watching U.S. employment figures, with economists projecting an unchanged unemployment rate at 4.1 percent and 170,000 new jobs added. However, analysts warn that annual revisions, California wildfires, and harsh winter weather could distort the data.

Yen Strengthens on Rate Hike Expectations

The yen’s rally was fueled by growing expectations that the Bank of Japan (BoJ) will raise rates further. BoJ board member Naoki Tamura signaled that rates may need to reach at least 1 percent in the latter half of fiscal 2025.

Barclays strategists anticipate further yen gains, with Japan’s wage negotiations playing a key role in the currency’s trajectory.