The dollar recovered slightly on Friday but was still heading for its softest week of the year after surprisingly weak U.S. jobs figures the previous day and ongoing loose Federal Reserve policy prompted investors to trim their bets.
The greenback is on track for a nearly 1% weekly fall against a basket of major currencies, although it edged up a quarter of a percent on the day.
The euro and yen are poised for their largest weekly percentage gains of the year, around 1% up each.
“In short, the energy has gone out of the dollar’s first-quarter rebound, just as it has gone out of the bond sell-off,” said Kit Juckes, head of FX strategy at Societe Generale.
The pause in the dollar’s rally follows a solid rebound over the first quarter after the greenback’s softest year since 2017.
However, after a run of strong U.S….