The dollar held near a two-week high versus the yen on Friday on upbeat US economic data ahead of a key jobs report, while the yuan eased and financial markets remained on tenterhooks as the death toll from a new coronavirus in China jumped yet again.
Sterling traded near a six-week low against the greenback and nursed losses against the euro, dogged by persistent worries about negotiations between Britain and the European union for a post-Brexit trade deal. Recent upbeat US economic data and China's stimulus steps gave traders some respite from heightened concerns about the new virus, though the uncertainty about the impact of the epidemic on global growth looks set to keep most investors risk-averse - at least in the short run.
"There is a perception that the US economy will be less affected by the virus than China or other countries, so that is a factor for dollar strength," said Masafumi Yamamoto, chief currency strategist at Mizuho Securities in Tokyo. The dollar traded at 109.92 yen on Friday in Asia, just below a two-week high hit earlier. For the week, the dollar was on course for a 1.5% increase versus the yen, which would be its biggest weekly gain since July 2018.
In the onshore market, the yuan fell 0.1% to 6.9787 per dollar. For the week, it was off 0.6% as Chinese financial markets took a battering after resuming trade on Monday following an extended Lunar New Year holiday. In contrast, the offshore yuan was on course for a 0.3% gain this week, supported by central bank stimulus and Thursday's surprise Chinese announcement of tariff cuts on US imports.
The yen and the Swiss franc, two currencies sought as safe-havens, initially gained as the coronavirus epidemic unfolded last month, but both currencies reversed course this week.
Against the dollar, the Swiss franc traded at 0.9745, headed for its biggest weekly decline since August 2019. Sterling found itself on the backfoot as concerns about Britain's relationship with the EU following its exit from the bloc returned.
The pound was little changed at $1.2937, close to the lowest since Dec. 25 and down 2% for the week. Sterling traded at 84.88 pence per euro, on course for a 1% weekly decline. The Australian dollar fell 0.2% to $0.6717 after the Reserve Bank of Australia slashed growth forecasts in its quarterly economic outlook due to bushfires and the coronavirus. The Aussie was still on course for its first weekly gain in six weeks, supported by the RBA earlier in the week raising the hurdle to further rate cuts.