The dollar edged higher versus major peers on Friday but within a narrow range as traders awaited clues on the pace of Federal Reserve policy normalization from a monthly payrolls report
The U.S. Dollar Currency Index, which measures the greenback against a basket of six peers, rose 0.1% to 94.278, keeping within sight of last week’s one-year peak of 94.504.
The dollar gained 0.26% to 111.91 yen, and touched 111.93, the highest level this month, helped by higher Treasury yields, with the benchmark 10-year note hitting 1.6010% for the first time since June 4.
The euro consolidated around $1.1550, after dipping on Wednesday to a 14-month low of $1.1529.
The Federal Reserve has said it is likely to begin reducing its monthly bond purchases as soon as November and follow up with interest rate increases potentially next year, as the U.S. central bank’s turn from pandemic crisis policies gains momentum.
Meanwhile, the Australian dollar slipped back 0.22% to $0.7297, following a 0.55% surge on Thursday. It earlier touched $0.7324 for a second day running, the strongest level since Sept. 16.
Sterling slipped 0.1% to $1.3600, holding on to most of a 0.26% gain from Thursday, when new Bank of England Chief Economist Huw Pill said inflation pressures were proving stickier than initially thought, reinforcing expectations for a rate hike by February.
Reference: Reuters
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