Dollar steadies near two-week low; yen holds near 40-year low as intervention risk watched

According to CNBC, the U.S. dollar steadied near a two-week low on Monday as investors scaled back bets on a Federal Reserve rate hike this year, while the yen stayed near a 40-year low. The euro traded at $1.1435 and sterling at $1.3351, while the dollar index was at 100.9 in early trading. The yen was at 161.57 per U.S. dollar, just off the 1986 low of 162.84 touched last week, after a sudden surge in buying briefly lifted the currency on Thursday amid intervention concerns. The South Korean won firmed slightly on the first day of its 24-hour onshore spot dollar-won trading, at 1,534 per dollar. CNBC reported the dollar posted its biggest weekly drop since April after the U.S. payrolls report showed job growth slowed sharply in June; OCBC strategists maintained a view of a moderate 2%-3% dollar appreciation in the second half of 2026. Investors are watching the minutes of the Fed’s June meeting this week, while Commonwealth Bank of Australia strategists said the minutes may be shorter or provide less insight than usual given Fed Chair Kevin Warsh’s view the central bank has provided too much guidance in the past.