Weaker U.S. jobs growth reduces Fed rate hike bets, easing dollar pressure but keeping yen under intervention risk.
The Japanese yen remained near 162.3 per dollar, close to its weakest level since 1986, as traders monitored potential official intervention. The dollar steadied after last week’s softer-than-expected U.S. jobs report, which dampened expectations for an immediate Federal Reserve rate hike this month.
Prior to the jobs data, markets had priced in a higher chance of a July rate increase, but June’s slower payroll growth and declining oil prices shifted sentiment. Investors now await the Federal Open Market Committee’s June meeting minutes for further clues on policy direction.
Fed Chair Kevin Warsh suggested last week that inflation concerns may persist, leaving traders to parse comments from policymakers like Christopher Waller for signals on future moves.