Dollar steady, yen hits two-week high before US data release

The dollar was on track to post its first weekly loss in a month on Friday, but moved away from two-week lows ahead of the US jobs report expected later on Friday, while Middle East tensions continued to weigh on investors.

According to Reuters, demand for safe-haven currencies, along with new warnings from Japanese authorities, helped push the yen to its highest levels in two weeks against the dollar.

Investors are concerned about developments in the Middle East after the US President threatened to condition Washington’s support for the Israeli operation in Gaza on taking concrete steps to ensure the safety of aid workers and civilians.

The dollar witnessed a turbulent week, as it fell from its highest level in five months to its lowest level in two weeks after an unexpected slowdown in the growth of the services sector in the United States, which reinforced expectations of lowering interest rates.

The US currency later rebounded after comments by Minneapolis Federal Reserve Bank President Neel Kashkari on Thursday in which he indicated that interest rate cuts may not happen this year if inflation remains high.

The dollar index, which measures the performance of the US currency against a basket of major currencies, rose by about 0.1% to 104.27.