The U.S. dollar, on Friday, February 3, g reversed earlier gains after the January jobs report’s lackluster wage-growth component took focus from stronger overall payrolls additions.
The ICE U.S. Dollar Index DXY, -0.14% which was 0.3% higher, turned 0.1% lower to 99.67. The index is on track to end week with a loss, off 0.9%.
Stunted wage growth may lead the Federal Reserve to be more measured in raising interest rates, according to analysts, which could weigh on the dollar.
The dollar index traded around a 14-year high in December and January on hopes the Trump administration would boost the economy and inflation, forcing the Fed to raise interest rates.
The euro EURUSD, +0.1394% exchanged hands at $1.0779, up from $1.0759 late Thursday. Over the week, the euro strengthened by 0.8%.
The yen and Japanese bond yields gyrated in early Asia trade, with the yen dropping to ¥112.58 and the yield spiking to 0.132%, according to FactSet, but stabilized after Bank of Japan intervening to keep 10-year yields below 0.11 %, announcing an unlimited purchase of bonds at a fixed yield.The yield on Japanese 10-year bond TMBMKJP-10Y, -5.21% fell back to 0.096%.
On Friday New York trade, the yen strengthened after the jobs report, as the greenback USDJPY, -0.10% reversed and was weaker, buying ¥112.52, compared with ¥112.93 late Thursday in New York. The yen strengthened 2.3% over the week.
In other currency trade, the pound GBPUSD, -0.1517% moved lower, continuing its decline from Thursday after what was perceived as a dovish statement from the Bank of England.
