Greenback flattens out in wake of dovish Fed clue

On Tuesday, the evergreen buck stood still against the Japanese yen and the common currency during Asia trade, after a dovish message from a major member of the Fed overnight put a lid on the US dollar’s upside momentum.

The greenback was worth ¥101.91, compared with Monday’s result of ¥101.87 in New York. The greenback weakened to as low as ¥101.42 during mid-morning trade before getting back to its intraday peak of ¥102.05 early afternoon. The euro was almost intact, trading at $1.1231.  

The WSJ Dollar Index, a traditional measure of the greenback against six major currencies, gained 0.09%, being worth 86.31.

On Monday, Lael Brainard, Federal Reserve Governor argued for a cautious approach to lifting rates, abating concerns regarding higher rates spurred by another Fed official last week.

Some market participants had expected Brainard, already known as a proponent of keeping interest rates low, to indicate hawkish messages before the major US bank enters its blackout period on Tuesday before the next policy gathering scheduled on September 20-21.

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