By Hannah Lang
       WASHINGTON, May 30 (Reuters) - Currency markets were choppy on Tuesday as the dollar hit a 10-week
high against peers and a six-month top versus the yen before retreating after Japanese officials gave their
currency a nudge. 
    Japan will closely watch currency market moves and respond "appropriately" as needed, the country's top
currency diplomat said on Tuesday after financial authorities met in response to a weakening in the yen to
its softest in six months versus the dollar.
    The yen strengthened on news of the unscheduled meeting, and held onto those gains, with the currency
last up 0.42% versus the dollar at 139.85 having earlier risen to 140.93, its highest since November 2022.
 
    Meanwhile the dollar oscillated in trading after U.S. President Joe Biden and Republican House Speaker
Kevin McCarthy on Sunday signed off on an agreement to temporarily suspend the U.S. debt ceiling and cap
some federal spending in order to prevent a debt default. 
    That helped the dollar index, which measures the U.S. currency against six major peers, hit
104.53 in European trading, its highest in 10 weeks. But it then retreated, falling as low as 103.870. It
last fell 0.153% to 104.140, clawing back some of those earlier losses. 
    "A lot of that has to do with how oil has kind of fallen apart today," said Erik Bregar, director, FX &
precious metals risk management at Silver Gold Bull. 
    Oil prices fell more than 4% on Tuesday as mixed messages from major producers clouded the supply
outlook ahead of the OPEC+ meeting this weekend.
    "People are scratching their heads: what does this mean for demand?" said Bregar. "And so with that, I
think we've seen a little bit of a safe haven bid come back into the dollar."
    Adam Button, chief currency analyst at ForexLive, hypothesized that the dollar's dip despite a deal on
the debt ceiling could be chalked up to end-of-the-month profit taking.
    "It's been a one-way trade in the dollar all month long, and given the uncertainty around the (U.S.
Federal Reserve) and the economic outlook later in the year, some market participants are taking a bit off
the table as the month turns," he said.
    Looking ahead, the market will be closely watching a readout of nonfarm payroll data due on Friday,
which could provide key insight into the strength of the U.S. labor market. 
    "The jobs run has been nothing short of spectacular and we're way overdue for disappointing jobs," said
Button. 
    The euro was last up 0.12% to $1.0718, having earlier hit a two-month low, while the pound was
last trading at $1.2391, up 0.26% on the day.. 
    In crytocurrencies, bitcoin last rose 0.15% to $27,792.00 while ethereum last rose
0.78% to $1,909.25.
========================================================
    Currency bid prices at 2:56PM (1856 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct       High Bid    Low Bid
                                              Previous                   Change                   
                                              Session                                             
 Dollar index                 104.1400       104.3100    -0.15%         0.628%        +104.5300   +103.8700
 Euro/Dollar                  $1.0720        $1.0706     +0.14%         +0.05%        +$1.0747    +$1.0673
 Dollar/Yen                   139.8550       140.4300    -0.41%         +6.67%        +140.9300   +139.5700
 Euro/Yen                     149.92         150.37      -0.30%         +6.86%        +150.6200   +149.7400
 Dollar/Swiss                 0.9063         0.9045      +0.22%         -1.97%        +0.9084     +0.9015
 Sterling/Dollar              $1.2392        $1.2359     +0.28%         +2.48%        +$1.2446    +$1.2328
 Dollar/Canadian              1.3600         1.3593      +0.04%         +0.36%        +1.3613     +1.3569
 Aussie/Dollar                $0.6512        $0.6539     -0.41%         -4.47%        +$0.6559    +$0.6503
 Euro/Swiss                   0.9716         0.9682      +0.35%         -1.81%        +0.9718     +0.9673
 Euro/Sterling                0.8648         0.8667      -0.22%         -2.22%        +0.8673     +0.8629
 NZ                           $0.6042        $0.6054     -0.17%         -4.83%        +$0.6066    +$0.6026
 Dollar/Dollar                                                                                    
 Dollar/Norway                11.1930        11.1080     +0.81%         +14.10%       +11.2170    +11.0790
 Euro/Norway                  11.9963        11.8923     +0.87%         +14.37%       +12.0407    +11.8687
 Dollar/Sweden                10.8742        10.8055     +0.65%         +4.49%        +10.8926    +10.7952
 Euro/Sweden                  11.6576        11.5818     +0.65%         +4.56%        +11.6735    +11.5803
 


    
 (Reporting by Hannah Lang in Washington; Additional reporting by Alun John in London and Ankur Banerjee in
Singapore; Editing by Jan Harvey, David Evans and Susan Fenton and Alison Williams)