US Dollar Steadies, Yen Rises on US-Japan Coordination Comments

The US dollar steadied after its recent surge, thanks in part to softer interest rates and lower oil prices. This has also had an impact on other major currencies, with four of the G10 currencies losing more than 1% this week.

However, the yen bucked the trend, rising for the first time in six sessions due to comments from Japan's Finance Minister Katayama highlighting ongoing coordination between the US and Japan.

The market is currently pricing in a 'normal' Fed tightening cycle, which contrasts with the Summary of Economic Projections that showed a more modest tightening path. This has led some analysts to suggest that sentiment has swung sharply in recent days.