The Dollar edged down from a two-and-a-half-month top against the Japanese Yen on Friday and was on track for its first weekly loss against major rivals since January.

However, the Yen looked set to extend the recent losing run to seven weeks, despite benefitting from a retreat to 10-year US yields down from almost a four-month high near 4.1%.

The Dollar index – measuring the greenback against major peers – declined 0.17% to 104.78, from a high of 105.36 at the beginning of the week, the strongest since 6th January. The index has edged down 0.43% since last Friday, Reuters reports.

“For this year, the outlook for USD will continue to depend critically on whether bonds and equities can rally together (as appeared to be happening in January) or whether we remain in the bearish/bearish environment that dominated 2022,” said RBC strategists.

“In turn, this will depend on incoming US data, particularly inflation data.,” they added.

Moreover, according to analysts surveyed by Reuters, recent Dollar strength is short-term, and the greenback will become weaker over the year. This is due to improvements to the global economy and forecasts the Fed will stop its rate hiking cycle before the European Central Bank.

In addition, Japan’s central bank is set to bring an end to stimulus measures following the retirement of Governor Haruhiko Kuroda in April, the Reuters report adds.

USD lost 0.24% to 136.445 Yen on Friday after hitting 137.10 overnight, a high not seen since 20th December.

Elsewhere, the Sterling rose 0.16% to $1.19665, on course for a 0.3% weekly gain. The Euro also increased 0.18% to $1.0616 after coming back from close to a two-month low of $1.0533 at the beginning of the week. The single currency is up 0.62% since last Friday.

In addition, the Australian Dollar edged up 0.28% to $0.6749, a 0.36% rise for the week.