The euro held above $ 1.25 on Friday as its strong weekly performance continued as the dollar did not rise despite a rise in yields on US bonds as the eurozone economic recovery and expectations of tightening monetary policy boosted the appeal of the single European currency.
The yield on US 10-year bonds rose near a four-year high as inflation expectations improved on economic growth and oil prices rose as central banks began to look more inclined to tighten monetary policy.
But the rise in the yield that is supposed to drive the dollar to the upside has not yet made an impact.
A survey published Thursday showed that manufacturing in the European Union continued to improve last month, boosting expectations that the ECB will be on the path of normalizing its monetary policy.
The euro traded little changed against the greenback at $ 1.2505, close to a three-year high of $ 1.2538 earlier in the week. During the week, the euro rose around 0.6 percent.
Against a basket of currencies, the dollar was little changed as markets awaited US jobs in the non-farm sectors, which are expected to release later on Friday.
The dollar strengthened gains recently against the Japanese currency, helping to keep away from its four-month low of 108.28 yen a week ago. The dollar rose 0.4 percent on the day to 109.32 yen.
The Chinese yuan continued its recent rise against the dollar, rising to 6.2773, its highest level in two and a half years. The yuan is up 0.8 percent this week.


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