Kevin Buckland

TOKYO (Reuters – The dollar is heading for a fifth win week against its major peers Friday ahead of the U.S. jobs report, closely watched by investors. It’s expected to confirm that policymakers are pushing for more aggressive monetary tightening.

As benchmark U.S. Treasury yields rose again overnight, the greenback was up against the yen for the ninth week. This came after an immediate drop after the Federal Reserve increased interest rates half a point during the week. It placed it in the forefront of global central banks that are hawkish.

According to a Reuters poll, economists expect that there were 391,000 new jobs in the United States last month.

The currency index, which measures the currencies against six competitors, edged 0.2% higher at 103.59 Friday. This put it up by 0.35% for this week. For the first time since 2000, it touched 103.94 during the last session.

The greenback gained 0.46% last week to 130.46yen. It was up 0.22% from the previous week’s 20 year high of 131.25.

On Wednesday, the dollar fell sharply after Fed Chair Jerome Powell indicated that no 75-basis point rate rise was being considered.

It more than made up the losses by Thursday. Analysts at National Australia Bank (OTC) believe that this retreat was more about positioning than any shift in view.

Gavin Friend (senior market strategist, NAB), said that Powell was “unambiguously hawkish” in a podcast for clients.

He stated that they would do all they can to curb inflation, buoying the U.S. yields as well as the dollar.

NAB’s currency forecasts were revised on Friday. They predicted the dollar will strengthen to $1.02 per EUR and $1.20 sterling by mid-September. However, it would ease slightly to 125yen.

On Friday, the euro fell 0.11% at $1.0529, keeping it below 0.12% for the week. However, the currency traded mostly sideways after sliding to $1.04695, a 5-year low, last week.

Sterling was 0.05% less at $1.23475. That’s a decrease of 1.81% in one week. The Sterling fell 2.22% overnight. This is the highest in 2 years after the Bank of England raised its interest rates half-a-point to warn of possible recession.

Bitcoin cryptocurrency lost 0.844% to $36,225. The 7.94% slide in the previous session was extended when the price fell to $35,579.40. A level it hasn’t seen since late February.

Dollar fell 0.2% to $0.7093 but continued its upward trend. It was on track for a 0.52% gain against the greenback, snapping a losing streak of five weeks. This rally came after the central banks raised interest rates more than anticipated and indicated further moves.