S. inflation reading overnight spurred traders to pare back bets for a near-term Federal Reserve interest rate hike.

-Japan intervention that saw it plummet to a three-month low. S.

4% weekly rise. S.

1% in July, in line with economists' expectations, leading money markets to reduce the odds of a September rate hike to 40%, down from 54% a week ago, according to CME Group's FedWatch. Michael Wan, a currency strategist at MUFG, said the primary dilemma for the Fed now lies in weighing inflation risks against a softening labour market, particularly after the weaker-than-expected July payrolls report released last Friday."

We think that the FOMC is likely ⁠to maintain ‌a restrictive holding pattern in September rather than a pivot towards a hike," Wan said in a note. 44 yen, close to the 160 level that some ⁠market participants see as a line in the sand following the rare joint intervention at the end of July.

20 over the course of three days. Shusuke Yamada, head of Japan FX/rates research at Bank of America, said investors can only judge the authorities' commitment to defending the yen through dollar-yen price action and the policy response that follows."

A break above 160 would likely be interpreted as a sign of limited policy resolve, while successful intervention that pushes USD/JPY below 155 would ‌have strengthened perceptions of strong commitment at least until recently," Yamada said." S.

on July 31. However, as USD/JPY has rebounded without any intervention over ⁠the past week, that credibility appears to have eroded."

1523. 7091.

Reserve Bank of Australia Assistant Governor Christopher Kent told a Reuters NEXT Newsmaker event in Sydney that the risks on inflation were very much to the upside and if those risks materialised, rates would have to rise again. 5832, continuing its gradual retreat from the highest levels since early June reached earlier this month.

Bitcoin was flat at around $63,532.