Dollar index slips near 99.5 as yen rallies and tariff fears fade
The dollar index slipped to around 99.5, extending losses as a sharp yen rally weighed on the greenback. Traders also digested John Williams’ remarks on easing inflation and looked to jobless claims ahead of Friday’s August payrolls.
The dollar index slipped to around 99.5 on Thursday, extending losses from the previous session, as a sharp yen rally weighed on the greenback amid speculation that authorities had conducted a rate check and could intervene again to support the Japanese currency.
In the US, New York Fed's John Williams said there is evidence that inflation continues to ease as the impact of tariffs fades, while higher energy prices have yet to spill over into other services.
Data on Wednesday also showed that US private employment growth slowed in August.
Still, markets are pricing in around a two-thirds chance of a Fed rate hike later this month.
Investors now look ahead to weekly jobless claims data on Thursday ahead of Friday’s August payrolls report for further guidance.
Elsewhere, oil prices halted their rally after President Trump said the latest attacks on Iran would be short-lived, easing inflation concerns and reducing safe-haven demand for the greenback.