USD Slides Against JPY as Fed Signals Caution

The US Dollar has continued its decline, dropping by around 2% against the Japanese Yen (JPY). The pair is trading near 155.45, its lowest level in a month and close to the post-July coordinated intervention low of 155.24.

According to Federal Reserve Governor Christopher Waller, 'give disinflation a chance; we can wait one meeting.' However, he warned that if inflation trends reverse in August, he would be 'willing to pull the trigger on a rate hike.'

The CME FedWatch Tool indicates that the probability of a rate hike at the September 15-16 meeting has fallen to around 50% from 63% a day earlier.