US dollar dips as dealers hope for US rate policy clues

[TOKYO] The US dollar dipped Friday as dealers focus on a speech by Federal Reserve boss Janet Yellen later in the day they hope will supply fresh clues about the central bank's outlook for the US economy and monetary policy plans.

Markets hope Ms Yellen will provide some guidance in her remarks to the annual global bankers' symposium in Jackson Hole, Wyoming later Friday.

Her speech comes as leading central banks have proven unable to convincingly reverse a broad economic slump, despite years of ultra low borrowing costs and stimulus.

Divergent views from Fed officials in recent weeks have kept markets guessing about the bank's intentions.

"Most traders have ruled out...a September hike, while positioned for a more likely outcome that the Fed will nudge December," said Stephen Innes, senior trader at forex firm Oanda Asia Pacific.

"The market is now very comfortable with low volatility... It is unlikely that the Fed will aggressively alter the funding landscape to avoid massive market fall out."

The US dollar eased to 100.47 yen from 100.55 yen Thursday in New York, while the euro nudged up to US$1.1291 from US$1.1281.

The US unit also drifted lower against the South Korean won, Singapore dollar, the Thai baht and Philippine peso.

The euro was unchanged at 113.43 yen.

AFP