LONDON—The dollar continued to eased from a 10-month high on Friday, but was still headed for its biggest quarterly gain in a year, giving the yen some breathing room as intervention watch intensified.
The dollar index, which tracks the U.S. currency against six others, fell 0.4 percent to 105.75, but was on track to end the quarter up 2.8 percent, along with an 11th straight weekly rally—its longest in nine years.