Forex
Dollar-Yen Pauses Near 160 Yen Amid Warsh's Hawkish Remarks
The dollar-yen pair traded in a choppy range near the low 160-yen level on August 31st, after Federal Reserve Chair Kevin Warsh suggested additional rate hikes to curb inflation.
In his Jackson Hole speech, Warsh hinted at room for action if inflation doesn't improve toward the 2% target, causing U.S. long-term yields to rise and interest rate futures to price in a higher probability of a September rate hike.
The pair briefly climbed to 160.20 yen, its highest level since July 31st, but caution over potential currency intervention by Japanese monetary authorities has intensified.