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- The number of Americans filing for unemployment benefits fell more than expected last week, suggesting the labor market remains on solid footing despite slowing economic growth and a stock market rout.

Initial claims for state unemployment benefits declined 16,000 to a seasonally adjusted 269,000 for the week ended Feb. 6, the Labor Department said on Thursday. Economists had forecast claims falling to only 281,000 in the latest week.

The drop pushed down claims to near their post-recession lows around 256,000, pointing to very low layoffs even as the domestic economic outlook becomes increasingly uncertain.

- Federal Reserve Chair Janet Yellen did little to help the greenback in her second day of testimony before U.S. lawmakers.

While she said she still expects the central bank to gradually hike interest rates this year as the labor market and economy continue to improve, she reiterated that policymakers were not on a "pre-set" path to return policy to "normal" given a worsening meltdown in global stock markets.

- The dollar fell on Friday headed for steep weekly losses, as investors braced for another day of cratering sentiment and waited to see whether Japan would act to stem its currency's slid.

Japanese markets were closed for a public holiday on Thursday, when the dollar fell as low as 110.985 yen JPY=, its lowest level since October 2014. It last stood at 112.05 yen, down 0.3 percent and on track to shed over 4 percent for the week.

The yen's recent rapid ascent followed the Bank of Japan's move to adopt negative interest rates on Jan.29, under which banks have to pay interest on certain deposits held at the BOJ. The dollar hit a high of121.70 yen, before risk aversion, slowing Chinese growth and falling crude oil prices sent investors into perceived safe-haven currencies.

"The BOJ's negative interest rate policy has less effect on encouraging more liquidity by banks but more side effects on the market," said Shinichi Kashiwagi, head of market sales at National Australia Bank in Tokyo.

One-month dollar/yen implied volatility - an indicator of how much currency movement is expected in the weeks ahead - surged to 15.9 percent JPY1MO=, its highest since June 2013 and nearly twice as high as 8.27 percent recorded earlier this month.

The euro was steady at $1.1325 EUR=, within sight of its overnight high of $1.1377, its highest since October 2015, and on track for a weekly gain of 1.5 percent.

The dollar index .DXY, which gauges the U.S. unit against a basket of six major currencies, slipped about 0.1 percent to 95.465, poised for a 1.5 percent loss, after skidding to a low of 95.236 overnight, its lowest since October.

- U.S. crude prices bounced away from 12-year lows early on Friday after comments by an OPEC energy minister sparked hopes of a coordinated production cut, yet analysts said such a move remained unlikely and that oversupply would persist.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were trading at $27.35 per barrel at 0014 GMT, up $1.14 or 4.35 percent from their previous settlement.

Prices plumbed a new 2003 low in the previous session as domestic stockpiles grew and investors fled from equities and other risky assets into safe havens such as gold.

Friday's jump came after a Middle East energy minister of an OPEC country said the producer club was willing to talk with other exporters about cutting output.

The energy minister of the United Arab Emirates repeated recent calls from the Organization of the Petroleum Exporting Countries (OPEC) that its members were ready to cooperate with other producers on a cut, although he added that cheap oil was already forcing some output reductions which would help rebalance the market itself.

Analysts said they saw little chance of OPEC and non-OPEC producers agreeing on a common policy and that low prices as a result of oversupply would likely persist.

Reference: Reuters