KONTAN.CO.ID - TOKYO. The dollar nursed losses against major currencies on Friday ahead of the U.S. non-farm payrolls report, which some investors fear could reinforce the view that economic momentum is slowing.

Sentiment has turned against the greenback due to a combination of rising U.S. coronavirus infections, a steady decline in Treasury yields, and a lack of consensus in Washington over additional fiscal stimulus.

Analysts say the dollar will continue to fall, particularly against the euro, the yen and Swiss franc, as expectations for a V-shaped recovery from the coronavirus epidemic fade and investors take a more sanguine view of markets.

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"I see further dollar weakness," said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

"Optimism for an economic recovery is not backed up by the data. Safe-havens are very high, but stocks are also high, which doesn't make sense. The party has to end at some point."

Against the euro, the dollar stood at $1.1874 on Friday, close to its weakest in more than two years

The British pound bought $1.3140, close to its strongest level since March. The dollar teetered near a five-year low against the safe-harbour Swiss franc at 0.9103.

Against the yen, which is also considered a safe currency, the dollar traded at 105.60, not far from a four-month low.

Editor: Anna Suci Perwitasari