Dollar Steady Ahead of Jackson Hole Amid BOJ Rate Hike Uncertainty
The US dollar traded in a narrow range on Thursday ahead of the Jackson Hole symposium, while the yen held steady after BOJ Deputy Governor Ryozo Himino's speech. Himino did not rule out a rate hike next month but stopped short of explicitly signaling one. The euro was up 0.07% against the US dollar at $1.1657, while the British pound traded at $1.3592.
The yen was largely steady at 159.29 per dollar, little moved after Himino's remarks on timely rate hikes to avoid an inflation spike that could force abrupt tightening later. Market participants had been looking for clues on the likelihood of a September rate hike and the scale and pace of further tightening, with money market broker Totan Tanshi pricing in an 86% chance of a BOJ hike next month.
Sho Suzuki, a market analyst at Matsui Securities, said Himino's comments were 'not especially dovish' but noted that the absence of a clear signal means there is some chance the yen could come under renewed downward pressure. The greenback index was steady at 99.12 after paring gains from an eight-day high.