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The euro was set for a fourth straight weekly fall against the US dollar, its steepest decline in around four months, as concerns about France’s fiscal trajectory and the Federal Reserve’s hawkish shift in mid-September weighed on sentiment.
After falling a sharp 0.77% on Thursday, the euro was broadly stable on Friday as oil prices dropped on talks over diesel and crude stock releases. The single currency was down 0.05% to $1.1240 at 1127 GMT, and was on track for a 1.35% weekly fall, the biggest since mid-May.
The dollar often draws support from higher oil prices, as investors cut exposure to currencies of major energy importers such as the euro and yen, which are seen as more vulnerable to a rise in crude costs.
The dollar index, which measures the US currency against six rivals, was down 0.1% at 102.03, but was set for a 1.01% gain this week, its third consecutive rise.