Most Asian currencies held steady Friday as stronger-than-expected U.S. job data cooled Federal Reserve rate cut expectations. The U.S. dollar remained firm near a six-week high, supported by a drop in initial jobless claims to 198,000, below forecasts.

Investors pushed back rate cut timing to mid-year, reacting to both data and recent Fed official comments. Policymakers signaled readiness to hold rates steady longer, citing a stabilizing labor market and persistent inflation, reducing appetite for dollar weakness.

The Japanese yen pared recent losses after government warnings stemmed sharp declines. Analysts noted the Bank of Japan sees the weak yen as increasingly inflationary. South Korea’s won gained slightly, heading for its first weekly rise in weeks despite earlier pressure from U.S. Treasury remarks.

Market watchers now eye upcoming inflation data and central bank meetings for clearer signals. Any hint of prolonged U.S. monetary tightening could pressure Asian currencies further, especially if dollar demand picks up in bond markets.