Dollar Eases as Yen Strengthens

2026-09-03 01:39 By Jam Kaimo Samonte 1 min. read

The dollar index slipped to around 99.5 on Thursday, extending losses from the previous session, as a sharp yen rally weighed on the greenback amid speculation that authorities had conducted a rate check and could intervene again to support the Japanese currency.

In the US, New York Fed's John Williams said 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 on Wednesday also showed that US private employment growth slowed in August.

Still, markets are pricing in around a two-thirds chance of a Fed rate hike later this month.

Investors now look ahead to weekly jobless claims data on Thursday ahead of Friday’s August payrolls report for further guidance.

Elsewhere, oil prices halted their rally after President Trump said the latest attacks on Iran would be short-lived, easing inflation concerns and reducing safe-haven demand for the greenback.



News Stream
Dollar Eases as Yen Strengthens
The dollar index slipped to around 99.5 on Thursday, extending losses from the previous session, as a sharp yen rally weighed on the greenback amid speculation that authorities had conducted a rate check and could intervene again to support the Japanese currency. In the US, New York Fed's John Williams said 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 on Wednesday also showed that US private employment growth slowed in August. Still, markets are pricing in around a two-thirds chance of a Fed rate hike later this month. Investors now look ahead to weekly jobless claims data on Thursday ahead of Friday’s August payrolls report for further guidance. Elsewhere, oil prices halted their rally after President Trump said the latest attacks on Iran would be short-lived, easing inflation concerns and reducing safe-haven demand for the greenback.
2026-09-03
Dollar Weakens Slightly on Labor Data
The dollar index cut modest gains to trade slightly lower at 99.5 on Wednesday as investors digested the latest ADP employment report. US private businesses added a net 38,000 jobs in August, the weakest increase since January and below expectations of 47,000, pointing to a broader cooling in the labor market. Despite the soft data, the greenback remained near a two-week high as investors sought safety amid concerns over the economic impact of the energy shock and diverging monetary policy paths across major economies. The US said it had launched overnight airstrikes on targets in Iran, prompting retaliation from Tehran in the most serious escalation between the two countries in weeks. Meanwhile, markets are pricing in a 66% probability of a September Fed hike, significantly higher than around 40% a week ago, according to the CME FedWatch Tool.
2026-09-02
Dollar Strengthens on Fed Rate Hike Bets
The dollar index rose above 99.7 on Wednesday, reaching its highest level in nearly three weeks as surging oil prices intensified inflation concerns and reinforced expectations for an imminent Federal Reserve interest rate hike. Oil prices advanced for a third consecutive session amid escalating hostilities between the US and Iran, raising concerns over further disruptions to energy flows from the Middle East. Meanwhile, Fed Chair Kevin Warsh’s commitment to combating inflation strengthened bets for a rate increase, with markets now pricing in around a 70% chance of a move this month. Fed Governor Michael Barr also said on Tuesday that the central bank should be prepared to raise interest rates if inflation fails to ease. Attention now turns to the ADP employment report due Wednesday and nonfarm payrolls on Friday for further clues on the Fed’s policy path.
2026-09-02