The US dollar held its ground on Thursday as traders positioned for the release of June non-farm payrolls data, while the Japanese yen remained under pressure near multi-decade lows.
The dollar index, which tracks the greenback against a basket of major currencies including the euro and yen, eased marginally by 0.02% to 101.38.
The muted movement reflects a cautious market stance ahead of the key labor report, which is expected to provide further clarity on the Federal Reserve’s policy path.
Currency volatility is being driven by two primary factors: the upcoming US jobs data and persistent concerns over potential Japanese intervention in the foreign exchange market.
The yen’s slide to 40-year lows has heightened jitters among traders, who are monitoring for signs of official action to support the currency.
The focus on US payrolls comes after a strong April report, where non-farm payrolls surged by 115,000, far exceeding the 55,000 increase forecasted by Dow Jones consensus.