The U.S. dollar index was flat at 99.01 on Friday, positioning for a 0.7% weekly decline after reaching its lowest level since May. The euro remained virtually unchanged at $1.1600, marking a modest 0.3% weekly gain.
The Japanese yen eased 0.4% to 156.35 per dollar after hitting an intraday high of 155.25, following a 2% surge in the previous session. The move leaves the yen on track for a 2.3% weekly advance, its strongest performance since late July.
Federal Reserve Governor Christopher Waller signaled that recent macro data show encouraging disinflation, saying he would favor keeping policy unchanged if the trend continues. His remarks, echoed by New York Fed President John Williams, reduced market expectations for a 25‑basis‑point Fed rate hike to roughly 50%, down from a peak of nearly 68% earlier in the week.
Economists projected U.S. nonfarm payrolls to add about 56,000 jobs in August, with the unemployment rate expected to hold at 4.1%, after July showed an unexpected loss of 23,000 jobs.
Japan’s top currency diplomat, Atsushi Mimura, warned that Tokyo remains "alert" and in close contact with U.S. authorities. The Bank of Japan’s governing council is expected to meet on Sept. 17‑18, with markets betting on a 25‑basis‑point hike.
Upcoming central‑bank meetings include the Federal Reserve on Sept. 15‑16 and the European Central Bank on Sept. 10.
