"Most noted a possible need to push rates higher if the data continue to come in hot – suggesting data dependence," Asher added. Analysts polled by Reuters said recent dollar strength is temporary, and the currency will weaken over the course of the year amid an improving global economy and expectations the Fed will stop hiking interest rates well ahead of the European Central Bank. "A lot of the dollar strength seen in February has probably run its course now," said Michael Brown, market analyst at TraderX.
"I wouldn't be surprised to see some consolidation until (Fed Chair) Powell speaks next week and the jobs report on Friday, with the bar for significant further gains in the dollar quite high at this point," Brown added.
The Bank of Japan (BOJ), meanwhile, is expected to start to dismantle extraordinary stimulus measures some time after Governor Haruhiko Kuroda retires next month. Tokyo inflation data for February exceeded the BOJ's target for a ninth month, but the core measure did decelerate from a 42-year high. The dollar eased 0.33% to 136.32 yen , after climbing to 137.10 overnight, the highest since Dec. 20. For the week, the dollar is just slightly above flat, but any gain would preserve its win streak since mid-January. The euro rose 0.18% to $1.0616, after climbing off a nearly two-month low of $1.0533 at the start of the week. Since last Friday, it is up 0.7%. Sterling added 0.34% to $1.1988, on track for a 0.4% weekly rise. The Aussie strengthened 0.48% to $0.6762, putting it up 0.54% for the week. Bitcoin slid 4.5% to $22,403, and earlier touched a 2 1/2-week low at $22,000. Ether declined 4.7% to $1,570.30 after touching $1,543.60, also a first since mid-February. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Samuel Indyk in London and Kevin Buckland in Tokyo; Editing by Christopher Cushing and Kim Coghill)
