Dollar holds, yen gains as equity rout saps risk appetite ahead of payrolls

The US dollar was little changed against major currencies on Friday as a selloff in US shares prompted demand for safer assets, Business Recorder reported. The yen rose 0.2% to a one-week peak of 157.40 per dollar before giving back part of its advance, while the dollar index stood near 101.55. The Swiss franc also gained 0.2%.

Investors were awaiting the US non-farm payrolls release for clues on the Federal Reserve’s next steps. Treasury yields fell, with the 10-year rate at 4.84% and the two-year at 4.47%, while futures markets put the chance of a December 25-basis-point rate increase at about 70%, down from above 80% on Wednesday. The euro was steady at $1.1222, and sterling edged up 0.1% after the Bank of England raised its policy rate as expected.