The dollar held its ground against major currencies today as investors waited for US jobs data later in the day to provide clues on how fast US interest rates would rise.
So far this week, market expectations for an upbeat non-farm payrolls reading have supported the dollar, leading investors to bet on a faster pace of monetary tightening.
The jobs data is due this afternoon and expected to show that around 220,000 new jobs were created in February compared with 146,000 the previous month.
"We had an adjustment in positions in the market and people were mildly short the dollar. Some of those positions are now being taken out giving the dollar a bit of a lift," said Mr Derek Halpenny, currency economist at Bank of Tokyo Mitsubishi (BTM).
Earlier the dollar was firm at $1.3108 per euro. It was steady at 105.39 yen, and was unable to break 105.50, where Japanese exporters were seen ready to sell dollars.
Mr Halpenny said he expected the data to show that 280,000 jobs were created in February, which is at the higher end of market expectations.