The dollar nursed its losses against the yen after skidding nearly 1 percent against its Japanese rival in the previous session to a low of 109.12. It was last up 0.1 percent at 109.35 yen JPY=, moving back toward Friday's three-week high of 110.59.
The dollar index, which tracks the U.S. unit against a basket of six major counterparts, was up 0.1 percent at 95.304, still with sight of Thursday's peak of 95.520, its loftiest level since March 29.
The euro edged down 0.1 percent to $1.1213 EUR=, holding above far last week's low of $1.1180, its lowest since late March.
U.S. interest rates being kept too low for too long could cause financial instability in future and stronger market expectations for a rate rise are "probably good", St. Louis Federal Reserve President James Bullard said on Monday.
A relatively tight labor market in the United States may also exert upward pressure on inflation, raising the case for higher interest rates, Bullard added.
On Monday, St. Louis Fed President James Bullard said investors' increasing expectations of a rate hike were "probably good," and that a relatively tight U.S. labor market might put upward pressure on inflation.
San Francisco Fed chief John Williams said, "Over the rest of the year two or maybe three rate increases, maybe one or two more (than that) next year so maybe three or four next year - I think that's still about right."
Several hours later, San Francisco Fed president John Williams said in an appearance in New York that he thinks it could be appropriate to raise interest rates two to three times this year, followed by another three to four times in 2017. The FOMC has left its benchmark Federal Funds Rate unchanged this year at a level between 0.25 and 0.50%. In December, the FOMC abandoned a seven-year zero interest rate policy by raising rates for the first time in nearly a decade. Later during a question and answer session, Williams admitted he is not sure whether the FOMC will raise rates in June.
Bullard kicked off a busy week of public appearances for FOMC members, ahead of the release of GDP and Consumer Sentiment data on Friday. Fed chair Janet Yellen will close the week with a speech at the Radcliffe Institute for Advanced Study at Harvard University.
San Francisco Fed President John Williams and St. Louis Fed Chief James Bullard both offered hawkish sentiment during speeches today. Both hinted that the markets can expect more than one interest rate increase in 2016. According to CME FedWatch, markets see a 30% probability of a rate hike in June. The probability increases above 50% in July.
Crude oil prices slipped after Iran's key oil ministers said the nation has no plans to freeze crude production ahead of the upcoming OPEC meeting. Iran is trying to hike its production levels back to its output during the pre-sanction years. OPEC producers are set to meet on June 2 to discuss the cartel's global production target. Iran and Saudi Arabia remain deadlocked in proxy wars in hotspots across the Middle East, raising the stakes of next month's meeting.
West Texas Intermediate crude for delivery in July CLN6, -0.29% declined by 33 cents, or 0.7%, to settle at $48.08 a barrel on the New York Mercantile Exchange. That was the lowest settlement for a front-month contract since May 16. July Brent crude LCON6, -0.27% on London’s ICE Futures exchange fell 37 cents, or 0.8%, to $48.35 a barrel.
Reference: Reuters, Market Watch, Investing
Thai
Eng