2018.01.0803:37:00UTC+00Dollar Steady as Loonie Firms on Strong Canadian Jobs Data

The dollar has steadied for the moment following a rocky couple of weeks.

As economic activity accelerates globally, the dollar has been undermined by expectations the Fed will not be the only central bank tightening policy in 2018.

The dollar's index against a basket of six major currencies gained 0.1 percent at 92.14, up from its Jan. 2 low of 91.751, which was its weakest level since Sept. 20.

U.S. nonfarm payrolls increased by 148,000 jobs in December, after a surge of 252,000 in November, according to data on Friday.

Initially, the dollar slipped after the payrolls figures, but later regained some composure.

The greenback started 2018 on the defensive, after the dollar index dropped around 9.9 percent in 2017, its weakest performance since 2003.

On Friday, strong Canadian jobs data fueled speculation that interest rates there could rise as early as next week and sent the local currency to a three-month peak.

The Canadian dollar last traded at C$1.2400 per U.S. dollar, up 0.1 percent from late U.S. trade on Friday.

The loonie had bounced to a three-month high of C$1.2355 on Friday after jobs data surpassed expectations which boosted market expectations for Canada's central bank to hike interest rates in January.

Upbeat euro zone data has underpinned the common currency at $1.2027, though it has so far failed to clear major chart resistance at the September peak of $1.2092.

The dollar has fared better on the yen at 113.21, due in part to expectations the Bank of Japan will stick with its super-easy policies.