The U.S. dollar hovered near a six-week high on Friday, supported by safe-haven demand amid escalating Middle East tensions and anticipation of the U.S. non-farm payrolls report, which could influence the Federal Reserve’s interest rate decisions. The dollar index climbed close to 102.09, marking a nearly 1.5% rise for the week, its strongest performance since April. Meanwhile, the yen headed for its worst weekly performance since 2016 due to uncertainty over Japan’s monetary policy, while the euro remained steady after a 1.18% drop this week.

The U.S. jobs report is expected to show 140,000 job additions and stable unemployment at 4.2%. Strong labor market data could impact market expectations for the Fed’s November meeting, where a rate cut is still anticipated, though the chances of a larger cut have decreased. Investors are also focused on the broader economic outlook, with upcoming data playing a key role in determining future rate decisions.