Dollar Weakened Amid Fed Uncertainty and Surging Yen

The dollar suffered its worst week since May as mixed signals from the Federal Reserve kept traders on edge. Despite a stronger-than-expected jobs report, which revived bets on a rate hike later this month, the greenback still ended the week 0.7% lower.

According to Noah Buffam, strategist at CIBC Capital Markets, 'The next trend move in the dollar likely depends on inflation next week and its read through to the September Fed.'

The yen surged by about 2.4% against the dollar, its best week since July, as investors anticipate a potential quarter-point rate hike by the Bank of Japan this month.

Wall Street strategists are also positioning for more weakness in the dollar, with some recommending selling the greenback against the yen. TD Securities maintains a 'moderately bearish dollar view' for the rest of the year.