The greenback muted on Friday, poised for touching its best weekly results since July bolstered by the lowered projections of early reduction of interest rate during this year before the most anticipated payroll figures that is scheduled to release during the day.

The Japanese yen has been negatively impacted by the solid kick off of the greenback. During the starting week of 2024, it fell 2.5% versus the US dollar, which is its worst weekly performance since August 2022.

Fed policymakers forecast 75 basis points of rate reduction in 2024 in December, which drove money-market bets for almost twice that amount. The market's optimism propelled a ferocious surge in equities and bonds at year's close.

The dollar index that gauges the greenback versus its major pairs advanced by 1.1% for the week, marking the best performance no seen since last July.

EUR/USD dipped 0.08% to $1.0934, on course for 0.9% drop during the week, breaking a three-week consecutive gain.

GBP/USD muted at $1.2677, but remained poised for a little drop for the week.

The yen edged down by 0.04% to 144.70 per dollar post hitting previously beyond three-week low at 144.955.