Key facts
- The U.S. dollar traded in a narrow range ahead of the Jackson Hole symposium.
- A Bank of Japan policymaker, Ryozo Himino, did not rule out a rate hike next month but did not explicitly signal one.
- The euro was up 0.07% against the dollar at $1.1657.
- The Australian dollar strengthened 0.22% to $0.7183.
- The yen was largely steady at 159.29 per dollar.
- U.S. Personal Consumption Expenditures Price Index increased 3.7% year-on-year through July, unchanged from June.
- The Bank of Korea raised its benchmark interest rate by 25 basis points to 3.00%.
The U.S. dollar traded in a narrow range on Thursday, holding steady ahead of the Jackson Hole symposium, while the yen remained largely unchanged after a Bank of Japan policymaker's remarks. BOJ Deputy Governor Ryozo Himino indicated that timely rate hikes could help avoid an inflation spike, but he stopped short of explicitly signalling a hike for the next month. This lack of a clear signal meant the yen was little moved, with market participants looking for further clues from upcoming board member appearances. The euro saw a slight gain of 0.07% against the dollar, reaching $1.1657, while the British pound eased 0.05% to $1.3592. The Australian dollar strengthened by 0.22% to $0.7183. The yen was trading at 159.29 per dollar. Market analysts noted that Himino's concern about upside risks to prices was not particularly dovish, but the absence of a clear signal leaves room for the yen to face renewed downward pressure. Money market brokers are pricing in an 86% chance of a Bank of Japan hike next month. In other economic news, U.S. Personal Consumption Expenditures Price Index data showed a 3.7% year-on-year increase in July, unchanged from June and slightly above estimates. This reading kept alive expectations for a Federal Reserve rate hike by year-end, with attention now turning to Federal Reserve Chairman Kevin Warsh's speech at Jackson Hole. The Korean won gained 0.48% against the dollar after the Bank of Korea raised its benchmark interest rate by 25 basis points to 3.00%. The Canadian dollar held steady against the greenback. U.S. President Donald Trump commented on trade talks with Canada.