In the global currency market on Wednesday, the dollar posted slight gains after earlier losses on expectations of a Federal Reserve interest rate cut this year.
The US Dollar Index (.DXY), which tracks the greenback against a basket of global currencies, was up 0.13% at 105.54.
The USD/JPY pair is trading at 155.22, up 0.34% despite the continued risk of intervention by the Japanese authorities.
Experts note that any intervention by Tokyo in the currency market to stabilize the yen will have a temporary effect, given the significant interest rate differential between the US and Japan.
Kazuo Ueda, governor of the Bank of Japan, said that the central bank may adjust monetary policy if the yen's decline significantly affects prices, informs Reuters.
The EUR/USD and GBP/USD fell 0.05% and 0.12% to 1.0747 and 1.2489, respectively.
Investors continue to focus on the pace and timing of Federal Reserve (Fed) rate cuts, especially after weaker US employment data reinforced expectations for a rate cut later this year. However, comments from Minneapolis Fed President Neel Kashkari left the market without a clear direction.
Today, traders will be watching for speeches from Fed officials Philip Jefferson, Susan Collins, and Lisa Cook, which could have an impact on the dollar's momentum.
The AUD/USD fell 0.23% to 0.6581 after the Reserve Bank of Australia (RBA) decided to hold interest rates at 4.35%. Investor sentiment tilted towards the RBA's potentially more hawkish stance, especially after the latest inflation data came in above expectations.
Meanwhile, the NZD/USD fell 0.10% to 0.5993 as weak New Zealand employment data reinforced expectations for a rate cut by the country's central bank in the near future.
The USD/CNY was up 0.10% at 7.2252.
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