The dollar witnessed stability in Friday’s trading, as traders awaited the statements of the Chairman of the Federal Reserve (the US Central Bank), Jerome Powell, at a time when the Governor of the Bank of Japan, Kazuo Ueda, sought to reassure the market after the surprise hike in interest rates last month.
The yen rose to 145.78 against the dollar after data showed core inflation in Japan accelerated for a third straight month in July.
The interventions, as well as the interest rate hike in July, have caused turmoil for investors who have abandoned popular carry trades that saw traders borrow yen to fund higher-yielding assets, which in turn has lifted the yen from a 38-year low it touched last month.
This move, coupled with fears of a US recession, led to a massive global sell-off in early August, but most markets have since recovered.
Ueda said the central bank is prepared to raise interest rates if the economy and prices move in line with its expectations.
The dollar index, which measures the greenback against six major currencies, was little changed at 101.43 in early trade after rising 0.34 percent in the previous session. The index touched 100.92 on Wednesday, its lowest level so far this year.
Powell is scheduled to speak at an event in Jackson Hole, Wyoming, later Friday, which traders will be watching for clues on when and by how much the central bank might cut borrowing costs.
The euro was last at $1.1119, not far from a 13-month high touched on Wednesday, while the pound was last at $1.3099, just below a 13-month high hit on Thursday.
The Australian dollar was at $0.6709, while the New Zealand dollar rose 0.1 percent to $0.61465.
