Dollar steady as PCE data sets up June rate cut bets; yen in focus
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The dollar remains steady as the personal consumption expenditures (PCE) price index rose 0.3% in February, slightly below economists' forecast of a 0.4% rise. This data has bolstered bets that the Federal Reserve could cut rates in June. The yen is also in focus as it hovers near 152 per dollar, raising concerns about potential intervention by Japanese authorities. Markets are now pricing in a 68.5% chance of a rate cut in June and traders are expecting a total of 75 basis points of cuts this year. Citi strategists predict that the Fed could deliver three rate cuts this year, but a further softening in labor markets could lead to five rate cuts. The euro and sterling are slightly higher against the dollar, while the dollar index remains close to a six-week high. In the cryptocurrency market, bitcoin and ether have both seen gains. The yen touched a 34-year low against the dollar last week, prompting speculation of intervention by Japanese authorities. Japan's plans for the yen remain uncertain, but Finance Minister Shunichi Suzuki has warned against excessive currency movement and said he would respond appropriately.

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https://m.economictimes.com/markets/forex/dollar-steady-as-pce-data-sets-up-june-rate-cut-bets-yen-in-focus/articleshow/108928623.cms