FX.co ★ Dollar Eases as Yen Strengthens

The dollar index fell to around 99.5 on Thursday, extending the previous session’s losses, as a sharp rally in the yen weighed on the greenback amid speculation that Japanese authorities had conducted a rate check and could intervene again to support their currency. In the US, New York Fed President John Williams noted 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 released on Wednesday also showed that US private-sector job growth slowed in August. Even so, markets are still pricing in roughly a two-thirds probability of a Federal Reserve rate hike later this month. Investors now await weekly jobless claims figures on Thursday and Friday’s August nonfarm payrolls report for further policy signals. Elsewhere, oil’s recent rally stalled after President Trump indicated that the latest attacks on Iran would be short-lived, easing inflation worries and curbing safe-haven demand for the dollar.