Investing.com - The dollar eased in Asia on Friday with the Trump administration on the back-foot as U.S. Attorney General Jeff Sessions faces growing calls to resign for failure to disclose a meeting with the Russian ambassador to the U.S. during the presidential election campaign.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased 0.11% to 102.05. USD/JPY changed hands at 114.22, down 0.17%.
In Japan, core CPI rose 0.1% year-on-year in January, edging above a flat expectation and marking the first gain in more than a year led by higher energy costs and more consumer spending. But household spending eased 1.2% year-on-year. Unemployment fell to 3.0% from 3.1%.
In China, the Caixin services PMI edged down o 52.6, well below the 53.3 seen as consumer spending during the Chinese New Year holidays may not have been as robust as expected. AUD/USD fell 0.20% to 0.7557.
Overnight, the U.S. dollar held firm against a basket of major currencies on Thursday, after positive U.S. labor market data added to expectations that the Federal reserve may hike interest rates in March.
Growing expectations that the Federal Reserve may hike interest rates at its next meeting in March continued to provide the platform for a broad based dollar rally while better-than-expected U.S. jobless data supported the narrative of a robust economy equipped to handle a period of monetary tightening.
Initial jobless claims fell by 19,000 to 223,000 for the week ended February 25, the Labor department said on Thursday. Analysts expected jobless claims to rise by 1,000 to 243,000 last week.
According to Investing.com’s Fed rate monitor tool, nearly 80% of traders expect a rate hike in March, compared to just over 60 percent on Wednesday.
Market participants look ahead to Friday for further clues on monetary policy, as Fed Chair Janet Yellen and Vice Chair Stanley Fischer are both due to speak.