The U.S. Dollar edged higher during the Friday trading session in Asia but is still poised to post a weekly loss on rising doubts of any significant scaling back of the Federal Reserve’s stimulus program. Markets are awaiting the Fed’s 2-day policy meeting which takes place next week to gain some insight into how much and how quickly the Fed might move to taper but given last week’s disappointing non-farms figures expectations are minimalistic. Slightly higher treasury yields on U.S. 1-year debt instruments also helped to give the greenback a lift.
As reported at 11:11 a.m. (JST) in Tokyo, the U.S. Dollar Index traded at 81.594 .DXY, a gain of 0.1% and moving away from Thursday’s 2-week trough of 81.356; nonetheless the Index lost approximately 0.7% on the week.
Yen Rally Pauses
The USD/JPY pair edge higher by 0.1% to 99.60 Yen, 25 pips from the session high of 99.85 Yen. The Japanese Yen had paused from its earlier rally after the release of disappointing labor data from Australia, resulting in the unwinding of bearish Yen positions, especially notable in the AUD/JPY pair which was earlier trading at 92.3300 Yen, a gain of 0.17%. The Japanese Government recently raised its outlook on the Japanese economy citing increasing capital expenditures to boost growth and stave off deflationary pressures.