Dollar-Yen Consolidates as Collins Signals Readiness for Rapid Tightening

The US dollar held firm in the lower 159 yen range against the Japanese yen in New York foreign exchange trading on August 25th, despite initially weakening to a low of 159.12 yen.

This was partly due to Boston Fed President Susan Collins' comments that rapid tightening would be appropriate if there's no further disinflation.

The dollar-yen pair closed at 159.31 yen, with the euro-dollar rising from 1.1660 dollars to 1.1675 dollars before closing and then drifting slightly lower to around 1.1670 dollars after Collins' remarks.

Collins noted that the labor market is consistent with maximum employment and that the economy is expanding at a pace close to its underlying trend, but added that 'absent further disinflation, rapid tightening would be appropriate.'