The dollar holds steady amid bond stability and anticipation of US jobs data

The dollar remained largely steady during early Friday trading, supported by stable bond markets and traders awaiting key US employment data expected to fuel speculation of an interest rate cut this month.

On Thursday, the dollar rose and was on track for a second consecutive week of gains in relatively quiet trading as investors refrained from making major moves ahead of the US jobs report.

Data released yesterday showed a higher-than-expected increase in US jobless claims, setting the stage for the more important non-farm payrolls report, which will influence the Federal Reserve’s monetary policy decision this month.

The US Dollar Index, which measures the currency’s performance against a basket of six major currencies, saw little change, settling at 98.207 and heading for a 0.4 percent gain this week.