- Dollar hits 10-week high vs yen
- Rising Treasury yields support dollar
- Quiet end to the week for currency markets
- Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
The dollar moved higher on Friday, hitting a 10-week high against the yen, as a jump in U.S. Treasury rates sent investors seeking higher yields into the greenback.
The U.S. currency managed to claw back earlier losses after data showed U.S. gross domestic product increased at a 2.6 percent annualised rate in the fourth quarter, above economists' forecasts for a 2.3 percent gain.
With U.S. interest rates higher than in other developed economies, investors have been turning to the dollar for yield.
"What's the dollar rebound on? Is it sentiment or yield? The answer is it's just about yield," said Simon Derrick, currencies analyst at BNY Mellon.
The yen was the main casualty from the dollar's rise, losing half a percent to 111.89 yen JPY=EBS , a 10-week low.
The yen, along with fellow safe-haven currency Swiss franc, had been supported earlier in the week when tensions between India and Pakistan and the collapse of U.S.-North Korea talks rattled markets.
Against a basket of rival currencies the dollar rose 0.2 percent to 96.325 .DXY .
It was a quiet end to the week elsewhere, with most major currencies stuck in tight trading ranges.
The euro slipped 0.1 percent to $1.1360 EUR=EBS , keeping the single currency firmly in a trading range against the dollar it has been stuck in for several months.
"Although the Fed effectively declared in January that it was poised to cease hiking rates, bouts of dollar selling have been short-lived," said Daisuke Karakama, chief market economist at Mizuho Bank.
"Even as the Fed's policy normalisation process slows down, the dollar looks to be supported as long as the European and Japanese central banks are stuck with current policies."
The Australian dollar was slightly ahead at $0.7096, AUD=D3 , stabilising after suffering sharp losses the previous day.
The Aussie took a hit on Thursday after a disappointing reading on Chinese manufacturing overshadowed a solid report on domestic business investment.
The benchmark 10-year U.S. Treasury yield stood at 2.7204 percent US10YT=RR after surging to 2.731 percent on Thursday, its highest since Feb. 6.
Sterling was little changed and consolidated around $1.3250 GBP=D3 after its gains of the past week. Investors have bought back into the pound in the belief Britain will avoid a disorderly Brexit and could delay its departure from the European Union.
