The US Dollar held steady on Friday after sustaining losses overnight as US data revealed indications of a cooling labour market.
The greenback was trading at 155.68 Yen at the time of writing, a 0.15% rise, but falling short of the 155.95 high hit on Thursday.
Whilst the Euro was almost flat at $1.0783, following a 0.3% overnight gain
There was only slight change for the Dollar index, measuring the currency against six major rivals, on Friday at 105.22, after declining 0.3% on Thursday.
USD’s fall followed data highlighting a rise in initial claims for US state unemployment benefits. After the weak payrolls report last week, investors were further buoyed that the Federal Reserve may begin cutting rates in the autumn, Reuters reports.
According to Alvin Tan, head of Asia FX strategy at RBC Capital Markets, the Dollar would unlikely decline too much, although elevated US interest rates still make US bonds attractive.
“They're still offering the highest rates in the G10 space. So that, in tandem with low volatility, suggests the US Dollar will remain supported. It's setting up to be more range-trading unless we see some kind of a shock,” he said.
In addition, Sterling moved higher on Friday as data revealed UK economic growth stood at 0.6% in the first quarter, more than forecast, with the country leaving behind a mild recession.
At the time of writing the Pound gained 0.1% at $1.2537, after trading at $1.2516 before the figures were published.
Sterling dipped to a two-week low on Thursday as the Bank of England held interest rates yet indicated a potential cut in the summer.
Elsewhere, the Japanese Yen was on course to lose around 1.7% against the Dollar for the week, as traders kept testing the determination of Japanese authorities to bolster the currency.
Market participants estimate that Tokyo spent around $60 billion last week to push the Yen back to its lowest level since 1990, around 160 Yen to the Dollar.
Japan's Finance Minister, Shunichi Suzuki reiterated the government's stance on intervention if necessary, during a regular post-cabinet meeting news conference on Friday.
“If indeed we go back to close to 160 then the risk of intervention does rise. Verbal intervention has been increasing in the last few days for sure,” Tan added.