The yen resumed its slow decline against the dollar on Monday after volatile trading last week, while investors weighed the odds of a deep Fed rate cut next month ahead of a slew of U.S. economic data.
The respite follows a tumultuous week that began with a massive sell-off across currencies and stock markets, driven by worries over the U.S. economy and the Bank of Japan's hawkishness.
Last week ended calmer, with Thursday's stronger-than-expected U.S. jobs data leading markets to pare bets for Federal Reserve interest rate cuts this year.
Still, investors are pricing 100 basis points of Fed cuts by year-end, according to the CME Group's FedWatch, opens new tab tool, and U.S. producer and consumer prices numbers due on Tuesday and Wednesday could shift market perceptions.
The dollar was trading at 147.315 yen , up 0.5%. The euro stood at $1.091850 and the dollar index was flat at 103.21. Sterling dipped 0.1% to $1.2764.
A week ago, the euro rose as far as $1.1009 for the first time since Jan. 2.
Source : Reuters
