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The dollar is likely to trade higher in the week ahead, with Friday's worse-than-expected U.S. non-farm payrolls data for October seen as the driving force for currency markets at least until mid week.
The dollar eked out a gain against most major currencies other than the yen after the government said the unemployment rate rose to 10.2 percent, the highest since April 1983.
Concerns about the recovery in the world's largest economy typically send investors into the relative safe haven of U.S. government debt on the assumption U.S. taxpayers will always repay it.
That stokes demand for the dollars to buy that debt. The continued negative trends in the U.S. employment data will keep pressure on the dollar. That pressure will likely continue until there is improvement on the road to recovery.
"A bad number and the dollar shows some strength next week," said Dan Cook, senior market analyst at IG Markets in Chicago.
Analysts cautioned that the effect of the jobs data will fade as the week moves closer to the most significant data of the week, the Reuters/University of Michigan preliminary November consumer sentiment survey on Friday.
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