Dollar Steadies as Waller Cools Rate Hike Bets

The US dollar steadied on Friday after Federal Reserve Governor Christopher Waller cooled expectations for a September rate hike. The Japanese yen remained near a one-month high and was headed for its strongest weekly gain since late July.

The euro and pound were firmer, while investors awaited the U.S. payrolls report for fresh clues on the Fed's next move. The was trading flat at 99.01, but remained on track for a 0.7% weekly decline after touching its lowest level since May on Thursday.

Hedge funds and asset managers cut their dollar long positions to about $27.6 billion in the week through August 25, from nearly $50 billion at the end of July, according to Commodity Futures Trading Commission data.