NEW YORK – The dollar was little changed while the Japanese yen sank to its lowest since mid-November as investors rebalanced portfolios for month-end.
Bitcoin also jumped to a two-week high as a movement by retail investors to pile into certain stocks expanded to cryptocurrencies.
The greenback has been largely range-bound against a basket of currencies for the past two weeks as investors evaluate whether a selloff that sent the currency down almost 7 percent last year is likely to continue.
It was little changed against a basket of currencies on Friday USD at 90.57. The index is up 1.53 percent from a three-year low of 89.206 reached on Jan. 6.
“People are waiting for fresh drivers and I don’t think we get them ‘til next month,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
“The question is whether the dollar’s correction continues or it is over, and I think that the jury is still out.”
Employment data for January released next Friday is the next major economic driver, while investors are also focused on fiscal stimulus.
The US Senate and House of Representatives will move next week on President Joe Biden’s plan to deliver COVID-19 relief to Americans and businesses reeling from the pandemic, top Democrats said on Thursday.
The yen underperformed on Friday even as risk appetite worsened, hitting a two-month low versus the dollar and a nearly three-year low against the Swiss franc.