FX.co ★ U.S. Dollar Rebounds Modestly Ahead Of Next Week's Fed Meeting

After moving notably lower during trading on Thursday, the value of the U.S. dollar has shown a modest move back to the upside during trading on Friday.

The U.S. dollar index is rising 0.24 points or 0.2 percent to 103.58, bouncing off its lowest levels in over two weeks.

The buck is trading at 139.41 yen versus the 138.92 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0747 compared to yesterday's $1.0782.

The modest rebound by the dollar comes as traders continue to look ahead to the Federal Reserve's monetary policy meeting next week.

Thursday's report showing initial jobless claims jumped to their highest level since October 2021 last week added to the optimism about the Fed pausing its interest rates hikes, as the central bank has warned about the impact of labor market tightness.

Key inflation reports are also likely to be in the spotlight next week, as the data could have a significant impact on the outlook for interest rates.

CME Group's FedWatch Tool is currently indicating a 71.2 percent chance the Fed will leave rates unchanged next week but a 53.0 percent chance of another quarter point rate hike in July.