Investing.com - The U.S. dollar remained steady on Friday, trading close to a one-month high following positive U.S. jobless claims data that eased concerns of a recession in the country.
At 04:15 ET (09:15 GMT), the Dollar Index, which measures the greenback against a basket of other currencies, was mostly unchanged at 103.007, maintaining levels seen before the labor market report was released.
Dollar Holds Firm After Volatile Week
New claims for state unemployment benefits dropped by 17,000 to 233,000 for the week ending Aug. 3, marking the biggest decline in almost a year. This helped alleviate worries about the U.S. economy experiencing a sharp downturn and supported the Federal Reserve's decision not to cut rates in July.
Analysts at ING noted that the market's reaction to the jobless claims data showed the heightened sensitivity to any U.S. macroeconomic indicators at present.
Next week, focus will shift to the release of consumer price data, which will provide further insight into the Fed's potential future actions.
Italian Consumer Prices Decline in July
In Europe, the euro slipped slightly to 1.0917 after hitting a high of 1.1009 earlier in the week. The European Central Bank has already begun reducing interest rates and is expected to announce another cut in September.
Consumer prices in Italy fell by 0.9% month-on-month in July, indicating limited inflationary pressures in the eurozone's third-largest economy.
The pound rose by 0.2% to 1.2768, recovering from a recent low, but still on track for a fourth consecutive week of losses.
USD/JPY Trading Above Recent Lows
In Asia, the yen weakened to 147.20 but remained well above lows of 141.60 seen earlier in the week. The Bank of Japan indicated that it would not raise interest rates during market volatility, which helped support the yen.
The Chinese yuan edged lower to 7.1739, supported by strong economic growth data for July and slightly lower-than-expected inflation figures.
Overall, the U.S. dollar held firm against other major currencies, driven by positive jobless claims data and uncertainty surrounding future Fed rate decisions.
Investors should continue to monitor economic indicators and central bank policies for potential market movements in the coming weeks.