The U.S. dollar is on track to record its largest weekly decline in nearly three months after weaker-than-expected employment data for June prompted investors to scale back expectations of further interest rate hikes by the U.S.
Federal Reserve, providing relief to the Japanese yen, which had been under significant pressure in recent weeks.
The dollar extended its losses in early Asian trading, with the yen trading at 161.01 per U.S. dollar after surging nearly 1% in the previous session. The move pulled the Japanese currency away from multi-decade lows as the U.S. dollar weakened.
The euro remained close to a two-week high at US$1.1442, while the British pound held steady at US$1.3361 and was on course for a 1.2% weekly gain, its strongest performance in nearly three months.
The Australian dollar rose to US$0.6935, ending a four-week losing streak, while the New Zealand dollar traded at US$0.5702, up 1.2% since the start of the week.
Meanwhile, the U.S. Dollar Index, which measures the greenback against a basket of major currencies including the yen and the euro, fell 0.2% to 100.77 after declining 0.5% in Thursday’s session.
The index is now on course for a 0.58% weekly loss, its largest weekly decline since early April.
