The dollar rose on Friday, heading for its fifth consecutive weekly gain.
Traders are evaluating the latest economic data and amid strong expectations for the Federal Reserve to lower interest rates in June.
The yen remained stable at around 150 yen to the dollar, while the dollar index, which measures the performance of the US currency against six major currencies, rose 0.13% to 104.40 on Friday.
The dollar fell on Thursday after mixed US data, with retail sales falling more than expected in January, while a separate report highlighted labor market strength.
Strong US data dashed expectations of early and deep interest rate cuts from the Federal Reserve.
According to CME’s Fed Watch tool, traders now expect an 80% chance of rate cuts in June, compared to expectations in the markets that the Fed would begin cutting rates in March.
Traders now expect rate cuts by 94 basis points this year, which is closer to the Federal Reserve’s expectations of a 75 basis point cut, and significantly lower than the expected 160 basis point cut by the end of 2023.
The Japanese yen fell 0.22% to 150.26 against the dollar, hovering around the 150 level, which could prompt potential intervention from Japan.
The yen, which is heavily influenced by US interest rates, has lost 6% against the dollar this year as traders have scaled back their expectations of US interest rate cuts.
Meanwhile, the euro fell 0.11% to $1.0761, heading for a slight decline for the week and nearing its lowest level in three months at $1.0695, touched earlier this week.
The pound fell to $1.2582, a 0.15% decline during the day and a 0.4% loss for the week.
The Australian dollar declined 0.08% to $0.65195, while the New Zealand dollar fell 0.16% to $0.60965.
