Currencies

The U.S. dollar was broadly steady on Tuesday while the yen trimmed earlier losses as Japanese officials issued fresh warnings following two rounds of suspected dollar-selling intervention last week.

 The U.S. dollar stabilized near its recent over four-month high in European trade Tuesday as strong economic data hit expectations of early rate cuts by the Federal Reserve.

NEW YORK/SINGAPORE (Reuters) -The dollar rose on Monday after data showed the U.S. manufacturing sector grew in March for the first time since September 2022, while the yen loitered below 152 per dollar keeping traders on edge over the threat of intervention.

The Japanese currency was also modestly weaker at 151.38 per dollar having traded just shy of the 152 mark at its weakest since 1990 on Wednesday before Japan’s top monetary officials suggested they were ready to intervene to prevent further declines.

The dollar gained on the euro on Thursday after a U.S. Federal Reserve policy maker said he wasn’t in a hurry to cut rates, while traders also prepared for key U.S. economic data due on Friday and squared positions for month- and quarter-end.

The yen dropped to its lowest level since 1990 on Wednesday before rebounding slightly after Japan’s top monetary officials met to discuss the rapidly weakening currency and suggested they were ready to intervene.

The dollar dipped on Tuesday as traders waited on a fresh catalyst to give clues on Federal Reserve policy, while the yen was steady after Japan’s finance minister said that he would not rule out any measures to cope with the weakening currency.

The U.S. dollar rose sharply in European trade Friday, after the surprise cut by the Swiss National Bank cast the Federal Reserve in a more hawkish light. At 04:00 ET (09:00 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.4% higher at 104.085, near a three-week high…

The dollar edged lower on Monday as traders looked ahead to central bank meetings this week, with the Bank of Japan potentially on the brink of ending negative rates and the market waiting for the Federal Reserve’s projections for rate cuts.

The U.S. dollar edged lower in European trade Friday, but remained on course for a positive week, after hotter-than-expected U.S. inflation data ramped up fears of hawkish signals from the Federal Reserve next week.