Dollar firms near 10-month high, focus on yen

US dollar held near its highest level in 10 months on Friday as markets headed into the end of the third quarter of the year, giving the yen a little more room at the end of the week amid fears of intervention.

According to Reuters, the euro has largely consolidated after its overnight recovery, but it is still not far from the low level it recorded in January at $1.0482, which if it went down would be its lowest level since December.

The dollar index, which measures the currency’s performance against 6 other major currencies, was largely stable in morning trading in Asia, heading for its eleventh consecutive weekly gain, after falling to 106.020 overnight.

The dollar rose amid expectations that the US economy will remain more resilient in the face of high interest rates compared to other economies, after the Federal Reserve indicated last week that it may raise interest rates further and is likely to keep them high for a longer period.

The yen remains a focus, trading near the 150 level, which is seen as potentially triggering intervention from Japanese authorities. While the Japanese currency recorded 149.34 yen

The euro settled at $1.05625, down 0.04% in Asia after rising from its lowest level in several months this week at $1.0488.