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US dollar stays weak after comments by Fed's Fischer

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The US dollar remained at the low end of its recent range on Monday as foreign exchange traders remained cautious despite somewhat hawkish weekend remarks by Federal Reserve Vice-Chair Stanley Fischer.

[NEW YORK] The US dollar remained at the low end of its recent range on Monday as foreign exchange traders remained cautious despite somewhat hawkish weekend remarks by Federal Reserve Vice-Chair Stanley Fischer.

At 2100 GMT, the dollar was virtually unchanged from late Friday at US$1.1322 per euro and 100.32 yen, despite a surge during the day.

Analysts said markets would likely move sideways ahead of the Federal Reserve's Jackson Hole, Wyoming central banking symposium that will be capped by a speech from Fed Chair Janet Yellen on Friday.

Markets are looking for signals on how slow or fast the Fed will move toward increasing interest rates, with Fed policymakers split in recent months over the US economy's strength and the prospects for strong inflation.

Mr Fischer, whose views are usually in line with Ms Yellen's, said on Sunday that the Fed was close to its policy targets on unemployment and inflation, and that he expects US growth to pick up in the coming quarters.

Recent statements by Fed officials "appeared to hint that the central bank was closing ranks behind a single message favouring the resumption of stimulus withdrawal," said Ilya Spivak of DailyFX.

AFP