Dollar rose as investors awaited US jobs data

The dollar rose slightly on Friday to maintain some momentum, after jumping in the previous session following a series of decisions by central banks in Europe.

Trading was relatively subdued as markets awaited the release of the latest US jobs data later in the day, which could change Federal Reserve policy.

The dollar rose against the euro, with the single currency down 0.1 percent to $1.09 in early European trade. But the euro remained well above a 20-year low of $0.953 hit in September.

On Wednesday, the Federal Reserve raised interest rates by 25 basis points to a range between 4.5 and 4.75 percent.

A slowdown in the pace of interest rate hikes and rhetoric from the central bank helped push the dollar lower as investors hoped the monetary tightening cycle would end soon.

But it rose sharply on Thursday when the European Central Bank raised interest rates by 50 basis points, to 2.5 percent. However, he hinted at the possibility of an end to monetary tightening after another increase in March, which caused the euro to decline.

Alvin Tan, an analyst at RBC Capital Markets, said that relatively weak earnings reports from tech giants Amazon, Apple and Alphabet prompted investors to avoid risk in the markets, which could support the dollar on Friday.

The dollar index rose 0.1 percent to 101.89.

The Japanese yen rose slightly against the US currency at 128.66.

On Friday, markets will be looking forward to the release of the US Nonfarm Payrolls data at 1330 GMT.

The British pound fell 0.18% to $1.22, after falling 1.2% on Thursday when the Bank of England raised interest rates but stressed that inflation was showing signs of abating.

The Australian dollar fell 0.35%, at $0.705. Meanwhile, the US dollar rose 0.35 percent against its Canadian counterpart at 1.336 Canadian dollars.