LONDON—The dollar was pinned near a five-month low against a basket of major currencies on Friday ahead of key U.S. labor market data, while the yuan was set for its biggest weekly gain since China abandoned its dollar peg and revalued its currency in 2005.
The dollar index, which measures the currency against six major peers including the yen and euro, fell 0.2 percent to 104.47, having earlier touched its lowest level since June 29 at 104.36.
The index slipped over 5 percent last month on expectations that the Federal Reserve would start to slow its pace of rate hikes from the December meeting.
Data released on Thursday supported that view, with the core personal consumption expenditures (PCE) price index coming in below expectations. The Fed tracks the PCE price indexes for its 2 percent inflation target….