Dollar steadies near three-week high ahead of U.S. payrolls data
The dollar index held near a three-week high on Friday and moves in currency markets were muted as traders waited for closely-watched U.S. non-farm payrolls data later in the session.
Currency investors are looking for indications of the strength of the U.S. economic recovery and the possibility of the Federal Reserve tightening its monetary policy, which is seen as positive for the dollar.
At 0718 GMT, the dollar index was up 0.1% on the day at 90.542, having hit a new three-week high earlier in the session.
The euro was down 0.1% at $1.21155 versus the dollar.
Foreign exchange strategists in a Reuters poll were almost evenly split on the dollar’s near-term direction following two months of broad weakness, as they await clearer signs from policymakers.
The Japanese yen changed hands at 110.195 versus the dollar.
China’s yuan softened past the 6.40 level, having shrunk away from its three-year highs when China’s central bank moved to limit the currency’s gains earlier this week.
Cryptocurrencies fell after a tweet from Tesla boss Elon Musk appeared to lament a breakup with bitcoin.
Tesla’s big position in bitcoin and Musk’s large personal following often set crypto markets on edge whenever he tweets.
At 0736 GMT, bitcoin was down 6.6% at around $36,600, while ether was down 8% at around $2,627.
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