Dollar Steadies Amid Job Market Optimism, Yen and Swiss Franc Decline

The dollar maintained its position near a one-week high against major currencies after a significant drop in U.S. jobless claims eased fears of an economic downturn. Meanwhile, safe-haven currencies like the yen and the Swiss franc fell as stock markets rallied, and riskier currencies saw modest gains.

The dollar remained close to a one-week high against other major currencies on Friday following a major drop in U.S. jobless claims that eased fears of an impending economic slowdown. The U.S. currency held steady against the Japanese yen after a three-day rebound, fueled by a surge in Treasury yields spurred by stronger-than-expected employment data.

The yen and the safe-haven Swiss franc hovered near one-week lows as stock markets in Asia and Europe rose, with riskier currencies like the Australian dollar and sterling edging higher. The week's market turbulence was largely triggered by softer-than-expected U.S. payroll figures, causing global stocks to tumble and driving demand for yen and franc to their highest levels since early January.

UBS FX strategist Yvan Berthoux commented, 'The prospect of a pure risk-on environment for FX in the second half of this year is less appealing given our more conservative forecasts for the dollar/yen and euro/Swiss pairings. We don't foresee a significant further unwind, as the washout has been quite evident in this environment.'