Dollar Holds Seven‑Week High as Asian Currencies Trade Flat Ahead of US Jobs Data

The U.S. dollar remained steady on Thursday, holding its seventh‑week high as investors weighed a mix of economic data and geopolitical headlines ahead of Friday’s key non‑farm payrolls release.

In early Asian trading, the euro hovered at $1.1678, a slight decline from the week’s peak, while sterling traded at $1.34605. The Japanese yen held at 156.78 per dollar, reflecting traders’ caution in taking large positions.

The Australian dollar slipped to $0.6721, just below the 15‑month high it reached earlier in the week, and the New Zealand dollar stayed near $0.5769.

U.S. labor market figures released Thursday showed a “no‑hire, no‑fire” stance: job openings fell more than expected in November and hiring slowed, yet the services sector surprised with a modest uptick in December, suggesting a solid end to 2025.

Market participants are pricing in at least two Federal Reserve rate cuts this year, with a single cut projected for 2026, and most expect the Fed to keep rates unchanged in January.

The dollar index, which measures the U.S. currency against six major peers, held at 98.737 and is poised for a modest weekly gain. Analysts note that the dollar’s recent decline is the steepest since 2017, but the drop is expected to be less severe in the coming year.

"The Fed’s mixed signals could reinforce a cautious stance," said Lloyd Chan, senior currency analyst at MUFG. "The market is now focused on the upcoming non‑farm payrolls report.

Geopolitical developments—including the U.S. intervention in Venezuela and rising tensions between China and Japan—have largely been absorbed by the market, leaving currencies largely unchanged.

Prashant Newnaha, senior Asia‑Pacific rates strategist at TD Securities, highlighted that a potential Supreme Court ruling on President Trump’s tariff policies could be a decisive factor for the dollar. "A ruling affirming the tariffs would remove the need for refunds and support the dollar," he said.

With the Supreme Court scheduled to decide this Friday, traders are watching closely for any impact on the U.S. currency.

*Data is delayed at least 15 minutes.*