On Friday, the American Dollar did not manage to make gains and is set for a weekly drop, in contrast to the Japanese yen which a seven-week high this week.

The U.S. has its market recovery stalling, Thursday’s reports showed, noting that the number of new claims for unemployment benefits in the U.S. was less than predicted.

After being aided by the Fed’s meeting this week, the USD was flat against several currencies and it expected to end the week with a drop of 0.4%.

On a more positive note, the Japanese yen hit a new seven-week high of 104.270. Later on, in the day, the pair fell to 104.325, down by 0.4%.

Rabobank senior FX strategist Jane Foley said, “This move is mainly about the dollar. This is one to be watching closely because there is a lot of political uncertainty and there is a lot of geopolitics and I think this is going to be increasingly seen as we go into the last months of this year and as we go into next year.” 

Moreover, the yen is being sought for more due to U.S.-China relations as well as upcoming presidential election.