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21/05/24
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USD Lower Against Yen After Fed’s Waller Again Rules Out Rate Hikes
On Tuesday, the U.S. dollar dropped versus the yen after Federal Reserve Governor Christopher Waller again said that rate hikes were not likely at this stage as inflation seems to be on its way to meeting the central bank’s target of 2%.
The greenback was mostly flat against other currencies before next week’s U.S. Memorial Day holiday, which typically leads to a flurry of activity in markets.
As there is no economic data this week, market participants are more focused on comments by Fed officials.
On Tuesday, the dollar was 0.1% lower versus the yen at 156.065 yen.
Fears of intervention from Japan’s authorities have however prevented traders from pushing the yen to new lows. On April 29, the yen fell to over 160 per dollar, the weakest level in 34 years.
Atlanta Fed chair Raphael Bostic spoke on Tuesday and said rates should not be cut too early. He said the Fed had to be cautious about making the first rate cut to ensure it doesn’t trigger pent-up spending among households and businesses and put the central bank in a position where inflation started bouncing.
The U.S. dollar index, which measures its strength against 6 other major currencies, was virtually unchanged at 104.56.
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