Dollar eyes weekly gain and yen retreats ahead of BC meetings By Reuters

By Iain Withers

LONDON (Reuters) – The was on track to post a weekly gain against a basket of currencies, while the fell on Friday ahead of a flurry of highly anticipated central bank meetings next week, including the eo.

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Japan’s biggest companies agreed with labor unions to raise wages to the highest level in 33 years on Friday, reinforcing views that the country’s central bank is ready to make a historic shift away from negative interest rates. .

Investors are closely watching decisions by other central banks for signs of how quickly they will cut interest rates after a period of rapid increases to curb runaway inflation. The and the will also meet next week.

The is on track to break a three-week losing streak with a weekly gain of 0.6%.

While the Fed is not expected to change interest rates next week, warmer-than-expected U.S. consumer sentiment this week has led investors to scale back bets on future cuts.

Markets now price a 57% chance of the Fed cutting rates in June, compared with 74% a week earlier, according to CME’s FedWatch tool.

“The Fed is likely to show more caution regarding the near-term inflation outlook,” MUFG currency analysts said in a note.

The dollar index — which measures the US currency’s performance against a basket of six currencies, rose 0.03% to 103.410.

The dollar was up 0.4% against the yen at 148.91.

It was trading at $1.08875, up 0.05% on the day.

It was quoted at 1.2745 dollars, down 0.07%.