Dollar steady; ether fuels crypto rally
dollar was firm on Tuesday while the yen struggled on the weaker side of the 156 level, though trade was mostly rangebound as investors generally stuck to their views of the expected timing and extent of Federal Reserve rate cuts this year.
Cryptocurrencies rallied, led by a surge in ether on growing anticipation of an impending approval of spot ether exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).
Against the yen, the dollar rose 0.07% to 156.37 in the early Asian session.
The yen has traded in a tight range over the past few sessions as fears of further intervention from Japanese authorities deterred traders from pushing the currency to new lows. However, the still-stark interest rate differentials between the U.S. and Japan maintained the appeal of the yen as a funding currency.
Elsewhere, the euro edged 0.03% higher to $1.0860, while sterling similarly tacked on 0.03% to $1.27095.
With little on the U.S. economic data calendar this week to guide the direction of currency moves, focus turns to a slew of Fed speakers for clues on the U.S. rate outlook and how soon an easing cycle could begin.
Several officials on Monday called for continued policy caution, even after data last week showed a welcome easing in consumer price pressures in April.
«I think all the comments from various officials will deliver more of the same messages, and the main message will be for the FOMC to continue a patient approach on interest rate cuts,» said Carol Kong, a currency strategist at
