The dollar index rose above 104.3 on Friday, recouping some losses from earlier in the week as Federal Reserve officials raised doubts on the timing of potential interest rate cuts, while investors await a key US jobs report.
On Thursday, Minneapolis Fed President Neel Kashkari said that if inflation remained sticky, no rate cuts may be required this year.
Fed Chair Jerome Powell also said on Wednesday that the central bank needs more evidence that inflation is sustainably moving toward the 2% target before slashing rates.
Still, markets continued to bet that the Fed will start easing this year.
Investors now look ahead to Friday’s jobs data, as well as incoming inflation readings next week that could influence that central bank’s decision in May and June.
The dollar rebounded across the board but is falling against the Japanese yen amid intervention fears.
