TOKYO - Major currencies were steady on Monday with the dollar consolidating against peers, as market participants awaited U.S. inflation data to assess the prospects of interest rate cuts this year.
But comments by Fed officials last week were varied as speakers debated whether interest rates were high enough. A jump in consumers' inflation expectations, revealed in a survey on Friday, could further complicate the conversation. The market will have a chance this week, with inflation readings in the form of the producer price index on Tuesday followed by the consumer price index on Wednesday.
"If inflation data ticks higher again this month it will surely undo the work of softer growth and slightly weaker employment figures.", which measures the greenback against a basket of currencies, was mostly flat at 105.34, following its first weekly gain last week after two successive weeks of decline.
The yen weakened 0.11% to 155.91. The dollar has marched up after a 3% decline at the start of the month, its steepest weekly percentage drop since early December 2022, after two suspected interventions by Japanese authorities.