The Bloomberg Dollar Spot Index advanced for a fourth consecutive session, marking its longest winning streak since early November, yet it recorded its largest annual decline since 2017.
Bolstered by better-than-expected labor market data, the index rose 0.1%, touching its intraday high during the New York morning session.
Initial jobless claims in the U.S. for the previous week came in at 199,000, lower than the forecast of 218,000; continuing claims were 1.866 million, below the expected 1.902 million.
Following the data release, Goldman Sachs analysts, including Jan Hatziu, noted, "We note that challenges with seasonal adjustments can lead to higher-than-usual volatility in jobless claims data during the holiday period."
Industry research strategist Zhang Chunyu wrote in a report, "Once the de-dollarization theme re-emerges, the dollar could continue to weaken into 2026, triggering a move similar to the one seen in the second quarter of this year."
USD/JPY rose 0.3% to 156.995, reaching a one-week high.
The yen is on track for a fourth consecutive monthly decline, which would be its longest losing streak since the beginning of 2024.
Short-term support for the currency pair lies at its 50-day moving average of 155.26.
EUR/USD fell 0.1% to 1.1734, declining for a second straight day; GBP/USD dropped 0.1% to 1.3451.
Both the euro and the pound have registered their largest annual gains this year since 2017.
USD/CAD increased 0.2% to 1.3726.
USD/CHF climbed 0.2% to 0.7936.
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