The dollar was heading for a second straight week of gains versus major peers on Friday ahead of a key U.S. jobs report and after a string of central banks this week pushed back against faster tightening of monetary policy.
The dollar steadied in early European trading on Wednesday, after an improvement in global risk appetite saw riskier currencies gain and the yen hit a four-year low against the dollar overnight.
The U.S. dollar headed back on Monday towards a one-year high hit last week as rising inflation expectations and higher bond yields boosted its appeal against its rivals, with the New Zealand dollar bucking the trend thanks to strong data.
The dollar held near a one-year high versus major peers on Wednesday, amid rising expectations the Federal Reserve will announce a tapering of stimulus next month, potentially following with interest rate hikes by mid-2022.
The dollar rose to its highest in nearly three years versus the yen on Monday as investors remained confident the U.S. Federal Reserve will announce a tapering of its massive bond-buying next month despite softer U.S. payrolls figures.