NEW YORK (MarketWatch) — The U.S. dollar paused its forceful push higher on Thursday as investors turned attention toward the Federal Reserve.
The greenback has strengthened noticeably against the euro and the Japanese yen since the beginning of July, and has gathered particular force in recent sessions. Read: You need to start watching the U.S. dollar
Now, traders will look to an economic symposium that kicks off in Jackson Hole, Wyo., where Fed Chairwoman Janet Yellen is scheduled to speak on Friday. Investors will be watching for signs of whether recent labor market improvement could herald earlier hikes to the central bank’s key policy rate, largely expected to begin next summer. If earlier hikes are on the horizon, the dollar could continue to gain.
On Wednesday, the central bank gave a nod to improving labor market conditions when it released the minutes of its last policy meeting, helping propel the dollar higher. However, most expect Yellen to hold tight to her low-rate policies when she speaks on Friday.
The U.S. dollar USDJPY, -0.02% inched down to 103.74 Japanese yen on Thursday morning, from ¥103.76 late Wednesday.
IG Securities market analyst Junichi Ishikawa said the pair could continue to climb if Yellen maintains a hawkish tone. "Until then, I think we will be seeing the pair moving in a rather narrow range."
The euro EURUSD, +0.09% bought $132.70, up from $1.3264 in the previous session. The British pound GBPUSD, -0.09% changed hands at $1.6588, down from $1.6598.
The dollar index DXY, -0.05% , which measures the greenback against a group of its rival currencies, slipped to 82.197, from 82.222.
Data on Thursday showed a drop in weekly jobless claims. Other data due out Thursday morning include the U.S. Markit PMI, the Philadelphia Fed index, leading indicators, and existing home sales.
