Yen soft but hovering near onemonth high
Dollar to snap sixweek winning streak on shifting rate views
Yuan steady after GDP data meets 2024 target of 5
Markets await Donald Trump39;s return to the White House

Jan 17 Reuters The dollar steadied on Friday, but was on track to end the week lower after a sixweek winning streak, while investors turned their focus to Donald Trump39;s presidential inauguration and awaited the incoming administration39;s policies.

The yen was poised for its strongest weekly performance in over a month as expectations grow that the Bank of Japan will raise rates next week, putting the dollar on the back foot.

The dollar has surged in the past few weeks on the back of rising Treasury yields, reflecting expectations that Presidentelect Trump39;s policies could boost inflation when the U.S. economy is already strong.

But bond markets got relief from a relentless selloff after softer U.S. core inflation data on Wednesday, plus remarks from Federal Reserve Governor Christopher Waller on Thursday, who said three or four interest rate cuts were still possible this year if the data supported that.

This led markets to up their bets on Fed cuts this year, putting some pressure on the dollar ahead of Trump39;s return to the White House next week.

Money markets currently price in about 43 basis points in U.S. rate cuts in 2025.

Investors are now awaiting Trump39;s inauguration speech on Monday to get a better sense of his policy steps, with a…