Dollar steadies as investors pause for breath; yen and sterling soften

The yen weakened connected Friday aft national wage talks successful Japan concluded and the lb edged little arsenic UK economic growth faltered, with investors besides processing trade tensions and slowdown concerns.

The Japanese currency, which scaled a five-month highest earlier this week astatine 146.545 per dollar connected safe-haven bids and marketplace bets for further complaint hikes successful Japan, mislaid immoderate crushed to commercialized arsenic anemic arsenic 149.02 a dollar connected Friday.

The dollar was past up 0.7% astatine 148.955 yen.

Japanese companies agreed to rise wages by 5.46% this year, topping some past year's preliminary and last figures and is apt to people the highest wage hike successful 34 years.

"The Rengo figures ... are inactive abbreviated of the much than 6% fig that the national had been aiming for, which mightiness person resulted successful immoderate JPY longs deciding to quadrate up their positions," said Michael Brown, elder probe strategist astatine Pepperstone.

Rengo, the country's largest national umbrella, had sought an mean hike of 6.09% this year.

The information is 1 important input into the Bank of Japan's determination making. Economists and markets spot the cardinal slope lasting pat astatine its gathering adjacent week arsenic policymakers gauge planetary risks.

Another underperformer connected Friday was the British pound aft the UK system unexpectedly contracted by 0.1% successful January. Sterling was past down 0.17% astatine $1.29295.

But still, the British currency was not acold disconnected its four-month highest of $1.2990 deed connected Wednesday.

PAUSE FOR BREATH

The dollar had started disconnected the week poorly against large peers but has since bounced backmost and was connected people to extremity with immoderate play gains.

The dollar scale past roseate 0.13% to 103.96, connected way for a 3rd consecutive days of gains, though concerns simmered astir the outlook for the U.S. and broader global economy.

"(I) would liken the greenback's caller rebound much to a intermission for breath, than a peculiar motion that the dollar is astir to marque a important resurgence," Pepperstone's Brown said.

Sowing much volatility crossed markets, U.S. President Donald Trump threatened to deed imports of wine...