SINGAPORE, Oct 4 Reuters The dollar hovered near a sixweek high on Friday ahead of a payrolls report that could decide the path of U.S. interest rates, while the yen surged to cap a turbulent week hit by uncertainty over Japan39;s monetary policy outlook.

The dollar was also boosted by safehaven demand as investors weighed widening Middle East tensions and their impact on the global economy.

The dollar index , which measures the U.S. unit against six peers, was last at 101.88, not far from a sixweek peak of 102.09 touched on Thursday. The index is up nearly 1.5, for the week, its strongest such performance since April.

Regaining some ground lost over the week, the yen rose 0.5 to 146.18 per dollar, though it remained close to an over sixweek low of 147.25 hit a day earlier.

Even so, it39;s on track to log a 2.7 decline this week, its most insipid weekly performance since May 2022 after comments from new prime minister, Shigeru Ishiba, stoked expectations that rate hikes in Japan are further away.

The spotlight on Friday though will be on the U.S. nonfarm payrolls report after data on Thursday showed the U.S. labour market gliding at the end of the third quarter.

Economists polled by Reuters expect 140,000 job additions, while unemployment is anticipated to keep steady at 4.2.

There is little evidence to suggest a U.S. hard landing is on the horizon, said Prashant Newnaha, a senior AsiaPacific rates strategist at TD Securities.

Our sense is that the risks to…