The greenback gained against the yen to 103.31, after earlier hitting 103.53, the highest level since July 29. As for the Fed’s rate action, he declined to mention the timing but said, “The work of the central bank is never done, and I don’t think you can say one and done and that’s it”.
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Traders are now turning their attention to the non-farm payrolls report due out on Friday.
“What we have seen in other countries is, to be honest, they have got this a bit wrong”, he said in a radio interview.
Two-year yields, which are more sensitive to near-term rate hike expectations, were also up 1 basis point at 0.81 percent.
Fed Vice Chairman Stanley Fischer said in a television interview on Tuesday that the USA job market is “very close to full employment” and that an interest rate hike will depend on incoming economic data.
Odds of a rate hike by the US Federal Reserve in December are rising following comments by the US Federal Reserve Chair Janet Yellen at the Jackson Hole symposium, but Citigroup Global markets said that a rate hike by the US central bank will not be necessarily negative for Indian equities.
Perhaps, says Boston Fed President Eric Rosengren, it should. U.S. gold futures were flat at $1,317.80.
“It’s finely balanced and remarkably stable. and yet dollar/yen moved higher again, setting the scene for the Japanese equities bounce overnight”, Societe Generale FX strategists said on Wednesday, adding that the dollar would have to break above 105 for this move to look like much more than “noise”.
The euro weakened to $1.1121, the lowest since August 10, before recovering back to $1.1143.
On Wall Street on Tuesday, markets logged losses, dragged down by shares of Apple Inc after antitrust regulators ordered the company to pay about US$14.5 billion in back taxes.
Spot gold rose 0.3 per cent to $1,314.19 per ounce at 0415 GMT.
USA stocks fell modestly in thin trading overnight, as oil prices hit two-week lows on dollar strength and economic data on consumer confidence and home prices proved a mixed bag.
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Market research firm GfK said its gauge of consumer confidence in the United Kingdom rose to -7 in August from -12 in July, when it suffered its sharpest drop in over 26 years as a result of the Brexit vote.
