Dollar Rangebound Ahead of Jackson Hole as Yen Waits on Rate Hike Signal
The US dollar traded within a narrow range on Thursday ahead of the Jackson Hole symposium, while the Japanese yen held steady after a Bank of Japan official hinted at potential rate hikes. The euro was up 0.07% against the US dollar at $1.1657, and the British pound traded at $1.3592.
BOJ deputy governor Ryozo Himino stated that timely rate hikes would help avoid an inflation spike that could force abrupt tightening later. However, he stopped short of explicitly signaling a rate hike next month, which had been priced in by some market participants, including money market broker Totan Tanshi at 86%.
Market analyst Sho Suzuki from Matsui Securities noted that Himino's remarks were not especially dovish, but the lack of a clear signal means there is still a chance the yen could come under renewed downward pressure.