The dollar was on track on Friday to snap a five-week losing streak against major currencies as traders took profits ahead of any statement from a meeting of global finance ministers and the euro repeatedly ran into technical resistance above $1.40.
Uncertainty over the outcome of a G20 meeting, where exchange rate policies were being discussed, prompted investors to moderate their dollar selling until the gathering in South Korea ends over the weekend. While traders would not rule out another lurch lower for the US currency, they said extreme bets against the greenback pointed to a correction. The dollar has lost some 7 percent against a basket of major currencies during a five-week swoon.
Though little changed against the euro and yen on Friday, the dollar index was up 0.7 percent since Monday, aiming for its first weekly gain since mid-September. Though the euro is up some 10 percent against the dollar since September, it has failed to hold ground for long on several occasions above $1.40. On Friday it was little changed at $1.3915, off a session peak of $1.3973. The dollar was up 0.1 percent at 81.44 yen, not far from a 15-year low.
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