Array
TOKYO, Sep 7 (Reuters) The dollar steadied on Thursday after getting a boost in the previous session from data showing a surprisingly big jump in U.S. labour costs that suggested the Federal Reserve may have to raise interest rates more.
The 5.0 percent jump in unit labour costs during the second quarter raised the prospect of rising wage pressures prompting the Fed to resume the string of rate increases it paused last month at 5.25 percent.
Overall, currencies remain stuck in tight ranges with market players seeing the Fed most likely to hold rates steady, the European Central Bank tightening policy more in the coming months but the Bank of Japan taking a go-slow approach to lifting rates.
''We expect the majors to remain choppy with their ranges in the near term, and we maintain our bias to a gradually lower dollar over the medium term,'' said currency strategists at JPMorgan Chase in a note to clients.
In early Asian trade the dollar was little changed at 116.57 yen having rebounded from a low of 115.57 earlier this week after a report showing strong Japanese capital spending in the second quarter.
The euro edged up to $1.2817 from $1.2805 late in New York trade but has shuffled between $1.2690 and $1.2940 for the past five weeks.
Against the yen, the single European currency drifted up to 149.45 yen but hovered near the lifetime peak of 150.73 yen struck on electronic trading platform EBS last week.
Investors were keeping an eye out for any comments by US Treasury Secretary Henry Paulson, who is participating in events with members of the Asia-Pacific Cooperation forum in Vietnam.
The Bank of Japan begins a two-day policy meeting on Thursday in which it is widely expected to keep rates at 0.25 percent.
On Friday, BOJ Governor Toshihiko Fukui will give his usual post-meeting news conference and is seen likely to remind investors that Japanese interest rates are set to rise in the months ahead at a gradual pace.
Events later on Thursday include the European Central Bank's monthly bulletin, German industrial production figures for July and a Bank of England rate decision.
The BoE is widely expected to hold rates steady at 4.75 percent after the surprising increase in August.
San Francisco Fed President Janet Yellen will also shed light on the Fed outlook with a speech on the economy and monetary policy at 1840 GMT.
REUTERS DH PM0624


Click it and Unblock the Notifications