The US dollar recovered marginally from a 12-week low on Friday, but was on track to record a fourth consecutive week of losses.
The dollar index, which measures the buck’s strength against a basket of other currencies, was up around 0.2 per cent on the day mid-morning in London according to Thomson Reuters data, at around 100.02.
On Thursday it fell to 99.266, its lowest level since 13 November.
Later in the day key jobs data out of the US could provide a fresh driver for the currency, which has been sent on a rollercoaster ride since the US election back in November.
It rallied hard in the immediate aftermath of Donald Trump’s victory, but its performance has since been marred by deep uncertainty around the new President’s policies.
According to a Thomson Reuters survey of economists, nonfarm payrolls are expected to have increased by 175,000 jobs last month, picking up from the 156,000 jobs added in December.
The unemployment rate is expected to be unchanged at 4.7 per cent in January, near a nine-year low.
UniCredit strategists in a note to clients on Friday said that a strong jobs report could provide some relief to the dollar, but that this was likely to be short-lived.
“On the other hand, should US payrolls surprise to the downside, we expect the [dollar] to accelerate its downward move across the board,” they wrote.
