Forex● Neutral
Dollar steady before US inflation data, yen under pressure
The dollar held steady Wednesday ahead of US inflation data. The yen hovered near 160 after the BOJ hike failed to sustain a rally. The CPI report due at 8:30 a.m. ET will set the tone for the Fed.
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The dollar held steady on Wednesday as traders waited for the US inflation print due later in the session. The yen remained under pressure, hovering near the 160 mark against the greenback. The Bank of Japan's rate hike last week failed to sustain a rally in the currency.
The dollar index was little changed at 105.8. Sterling traded at $1.2640 and the euro at $1.0720, each little changed on the day.
The yen weakened to 159.9 per dollar, not far from the 160 level that prompted suspected intervention in late April. The BOJ's move to raise rates to 0.25% did not provide lasting support. The carry trade remained attractive with US rates still above 5%. Dollar Holds above JPY 160 after BOJ Hike
A hot CPI number would reinforce the case for the Federal Reserve to hold rates higher for longer, traders said. A soft print would revive bets on a September cut. The range of outcomes has kept positioning light ahead of the release.