The dollar index slipped toward 99.5 on Monday, marking its fifth straight daily decline, after Japan confirmed it had conducted coordinated yen-buying operations with the United States. Data from the Bank of Japan suggested the authorities may have spent as much as $58.97 billion on intervention last Thursday. Japanese officials also warned they are prepared to carry out further coordinated measures if needed, emphasizing that they remain in close contact with their US counterparts.
In the United States, investors are now focused on a busy week of labor market releases, culminating in Friday’s closely watched monthly employment report. Last week, the Federal Reserve left interest rates unchanged, though three policymakers dissented, arguing that delaying action for too long could ultimately force the Fed to tighten policy more aggressively. Futures markets currently imply about a 68% probability of a 25-basis-point rate increase at the Fed’s September meeting.
