Anna 
During Asian trading on Friday, the dollar retreated despite cautious market sentiment, driven by a rebound in technology stocks on Wall Street. However, risk sentiment failed to persist as geopolitical tensions in the Middle East escalated and concerns about China’s economy lingered. The intensified situation included reports of Iran-backed Houthi terrorists firing anti-ship ballistic missiles at a U.S.-owned oil tanker, prompting new strikes by the United States against Houthi missiles.
On Thursday, U.S. unemployment benefit claims dropped to their lowest level in nearly a year and a half, signaling tightening labor market conditions. This development reduced the likelihood of the Federal Reserve cutting interest rates in March. CME Group’s FedWatch Tool indicated that the probability of a rate cut in March is now below 60%, down from about 75% earlier in the week.
Despite strong U.S. data and hawkish comments from the Fed, the dollar index fell 0.09% to 103.45 points, while the 10-year U.S. Treasury bond yield rose 0.75% to reach a five-week high around 4.18%.
