Investing.com - The dollar was hovering close to four-month lows against the other major currencies on Friday, as uncertainty over the timing of future U.S. rate hike persisted and investors eyed the release of U.S. data later in the day for further indications on the strength of the economy.
USD/JPY was down 0.23% at 112.16, still close to Thursday’s 15-month trough of 110.98.
The safe-haven yen remained supported amid persistent fears over the health of the global economy and the euro zone financial sector.
Markets were also jittery as oil prices remained below $28 a barel on Friday, even after the United Arab Emirates energy minister said the OPEC was willing to talk with other exporters about cutting output.
The yen strengthened briefly overnight, sparking speculation that the Bank of Japan was checking currency rates, a step that often precedes intervention.
Meanwhile, sentiment on the greenback remained fragile after Federal Reserve Chair Janet Yellen reiterated on Thursday comments made the previous day to Congress.
In testimony before a congressional committee on Wednesday, Yellen said there are good reasons to believe the U.S. will stay on a path of moderate growth that will allow the Fed to pursue "gradual" adjustments to monetary policy.
But she also acknowledged risks facing the U.S. economy from tightening financial conditions driven by falling stock prices and uncertainty over China.
EUR/USD slipped 0.10% to trade at 1.1312, close to the previous session’s three-and-a-half month high of 1.1377.
Earlier Friday, data showed that German gross domestic product grew 0.3% in the fourth quarter, in line with expectations and unchanged from the previous quarter. Year-on-year, German GDP rose 2.1% in the last quarter, below expectations for a 2.3% growth rate.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 95.61, not far from Thursday’s four-month low of 95.28.