The U.S. dollar fell versus its main competitors after signs of weakness in the labor market reinforced the case for faster Federal Reserve rate cuts.

Despite this, the dollar stayed on track for a second straight weekly gain on Friday after surprisingly strong monthly employment numbers last week prompted traders to abandon bets on a half-percentage point cut at the next monetary policy meeting. from the Fed.

The dollar index, which measures currency against six peers, was stable at 102.84 at 01:11 GMT, but down 0.3% from 103.17 on Thursday, which was its highest level since August 15. For the week, the index is on track for a rise of 0.39%, building on the rise by 2.06% from the previous week.

The dollar fell against the yen. “The net impact has been some volatility in global markets, but overall, returns haven't changed much,” said Tapas Strickland, head of market economics at National Australia Bank. The dollar gained 0.06% to 148.68 yen, approaching Thursday's high of 149.58 yen, a level

The Euro stayed steady at $1.093650 after rebounding overnight from a two-month low of $1.090025.

The Australian dollar held steady at $0.67395 after rebounding from its lowest level since September 16 at $0.6702 on Thursday.

The Indian rupee is expected to open almost flat on Friday and maintain a tight range after U.S. inflation data didn't have much of an impact on the Federal Reserve's short-term interest rate outlook. The one-month undeliverable futures contract indicated that the rupee would open barely changed from 83.9675 in the previous

The Australian and New Zealand dollars are both on the verge of a second consecutive week of declines, with their short-term outlook determined by the details of fiscal stimulus expected from Beijing and the impact of these measures on commodity prices.

That's why Aussie rebounded after a three-week overnight low and rose 0.1% to $0.6745 on Friday.

It is still down 0.7% for the week, with support now at 67 cents and a 200-day moving average of $0.6627.

The New Zealand dollar was trading at $0.6097, after rising 0.5% overnight to return above its 200-day moving average of $0.6096.