The dollar held weaker and fell against the yen on Thursday in Asia ahead
The greenback struggling to post further gains tied to rumor the next chair of the U.S. Federal Reserve will direct policy in a more aggressive direction.
USD/Yen, Other Currencies
The dollar took a breather after having rallied over the past week on optimism over the prospects for U.S. tax reforms, as well as speculation that the next chair of the U.S. Federal Reserve could steer policy in a more hawkish direction.
changed hands at 113.66, down 0.08%, while traded at 0.7704, up 0.10%. Also, traded at 1.1820, up 0.07%, while down 0.20% to $1.3239 after a better-than-expected economic growth data.
Overnight, the greenback fell against a basket of major currencies on Wednesday after data showing new home sales hot a nearly 10-year high was offset by strong gains in sterling amid bullish U.K. economic growth.
The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of major currencies, fell 0.13% to 93.41.
Fed’s New Chief Selection
Despite Wednesday’s pullback, the dollar index has gained about 0.6 percent from a trough hit a week ago, held up by hopes for a tax-cut plan and in the aftermath of reports that Stanford University economist John Taylor impressed President Donald Trump in his interview for the Fed’s top post.
Taylor favors a rule-based approach to setting interest rates and is seen as someone who may put the Fed on a path of faster rate hikes compared with Fed Chair Janet Yellen, whose term expires next February.
Trump's other possible nominees to head the Fed include Yellen, Fed Governor Jerome Powell, his economic adviser Gary Cohn and former Fed Governor Kevin Warsh.
On Wednesday, a senior administration official said Trump was not expected to pick Cohn due to his key role on tax reform, while Trump told Fox Business Network that he thinks Yellen is "terrific" but suggested he would like make his "own mark" for a Fed chair.
Trump is expected to announce his Fed chair candidate before his Asian trip in early November.
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