The US dollar pared some of its weekly losses during New York trading on Friday, as equity markets declined and Treasury yields were mixed, with traders trimming short positions ahead of the weekend.
The Bloomberg Dollar Spot Index edged up 0.1%, yet still recorded a 0.1% decline for the week, marking its longest streak of weekly losses since April.
Market sentiment remained subdued, pressured by ongoing US strikes in Iran and the slide in stocks. The yield on the 10-year US Treasury note fell 1 basis point to 4.54%.
Brent crude oil surged past $87 per barrel, notching a weekly gain of over 15% amid heightened concerns that hostilities between the US and Iran could escalate.
According to two European traders, short-term funds reduced their short dollar positions against major currencies.
The USD/JPY pair was largely flat at 162.44. Earlier, it had dipped to an intraday low of 162.13 after Japanese Prime Minister Sana Takaichi emphasized the importance of encouraging households and the Government Pension Investment Fund (GPIF) to boost investments in Japanese financial assets.
With the yen lingering near its lowest levels in nearly four decades, Finance Minister Tsuyoshi Katayama issued the sternest warning in weeks regarding potential currency market intervention.
Options with a strike price of 162 yen, representing approximately $2.87 billion notional, are set to expire on Monday.
The EUR/USD pair dipped slightly to 1.1436, narrowing its weekly advance to 0.2%. The GBP/USD pair fell 0.2% to 1.3454.
The final reading for the Eurozone's June Consumer Price Index matched economists' expectations.
The Canadian dollar gained 0.2%, trading at C$1.4013 per US dollar.
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