Dollar fell off ten-month highs against a basket of major rivals while on track for the largest quarterly profit this year, giving the yen a chance today to recoup amid concerns the Japanese government will intervene in the forex market.

The dollar index fell 0.4% to 105.70, but still headed for a 2.8% quarterly profit, following the 11th weekly profit in row.

US treasury yields fell today off multi-year lows in turn robbing the dollar of its support.

Recent extensive gains by US treasury yields and oil prices helped boost dollar's standing against almost all rivals. 

Now investors await important data on US consumer spending later today on Friday.

Yen is pressured as it approaches 150 with Japanese authorities likely to intervene then. 

Otherwise, the UK pound rose 0.6% today to 1.2268 against the US dollar away from March 17 lows after recent data showed the UK economy is more resilient than expected. 

Euro rose on Friday against a basket of major rivals amid mounting pressures on the US dollar before major inflationary data. 

EUR/USD fell to 1.0575 on Wednesday, the lowest since March, amid expectations the ECB won't likely raise interest rates again this year. 

Conversely, the Federal Reserve is tipped to raise interest rates once more this year, while waiting to assess new inflation data to guide the policy ahead. 

Chicago Fed President Austin Golsbey said that if inflation hanged stubbornly above 2%, it'll represent a graver danger than the Federal Reserve's policy tightening. 

Otherwise, European Central Bank President said recently that higher ECB interest rates will help cut inflation towards 2%, however she asserted the ECB doesn't promise interest rates won't change again next year. 

Markets are putting a particular focus on the housing sectors in Australia, Canada and New Zealand, which are highly reactive to changing interest rates.

Investors also look forward to fresh US consumer spending data in the US, crucial for gauging inflation. 

On trading, EUR/USD rose 0.4% as of 11:13 GMT to 1.0615. 

Dollar fell against yen on Friday after yen marked 11-month lows recently following strong hints by the Federal Reserve for another interest rate hike this year.

Such bullish outlook boosted US treasury yields to incredible highs and boosted dollar's standing against rivals.

Yen was hurt as well after Bank of Japan decided to maintain interest rates at record lows last week, while vowing to continue supporting the economy until inflation reaches 2%. 

There's no sign so far that the Bank of Japan might start to unwind its ultra-easy monetary policies, heaping pressure on the currency.

USD/JPY last traded at 148.97, the highest since October 2022. 

Thus is the yen is trading dangerously close to 150, at which Japanese authorities might directly intervene to boost the currency. 

The yen is merely suffering from the widening policy gap between US treasury yields and Japanese government yields. 

The gap in 10-year government bonds between both countries surged to 382 basis points on Monday. 

US stock indices rose on Thursday following a spate of positive data.

Earlier US data showed GDP growth at 2.1% y/y in the second quarter.

US unemployment claims rose by two thousand to 204 thousand in the week ending September 23, while analysts expected 215 thousand.

On trading, Dow Jones rose 0.4%, or 133 points to 33,683, while S&P 500 rose 0.7%, or 30 points to 4305, as NASDAQ slid 1%, or 135 points to 13,227.