News: FOREX-Dollar steadies as Fed's Waller cautions on inflation

The U.S. dollar steadied on Monday after Federal Reserve Governor Christopher Waller said the central bank was not softening its fight against inflation, which made some investors think that the steep sell-off last week was probably overdone.

A slightly cooler-than-anticipated inflation data on Thursday put the greenback in a tailspin, with the dollar index =USD slipping 4% for the week, its worst week in more than two and half years.

The dollar index =USD , which gauges the greenback against a basket of six counterparts that includes the yen, euro and sterling, rose 0.234% to 106.960 during Asian trade on Monday, coming off the nearly three month low of 106.27 it touched on Friday.

Global equities, meanwhile, soared as investors poured into risky assets on hopes that peaking inflation means less aggressive rate hikes from the Fed.

But Waller said on Sunday that the inflation print last week was "just one data point" that would have to be followed, and h other similar readings would be needed to show convincingly that inflation was slowing.

Waller did add, however, that the Fed could now start thinking about hiking at a slower pace.

"I think the market got a little bit ahead of itself," said Carol Kong, a currency strategist at Commonwealth Bank of Australia, adding the market can expect more reality checks from Fed officials, which would help the dollar to recoup more ground.

U.S. inflation will likely remain high and keep the Fed on its monetary tightening path, Kong said.

U.S. consumer sentiment fell in November, pulled down by persistent worries about inflation and higher borrowing costs, a survey showed on Friday.

Sim Moh Siong, currency strategist at Bank of Singapore said the Fed's job was still not done and the central bank is unlikely to want the equity market to rally too much or bond yields to come off too much.

"If the financial markets get too buoyant, they will probably growl louder to make themselves heard in terms of their inflation message."

The U.S two-year yield US2YT=RR , which reflects rate move expectations, edged up to 4.41%, after diving as low as 4.29% on Friday, while the U.S. 10-year yield US10YT=RR was up 7 basis points at 3.899%.

Elsewhere, cryptocurrencies remained under pressure from ongoing turmoil after the fall of crypto exchange FTX. FTX's native token, FTT FTT=CCCL , was last down 7.6% at $1.31, taking its month-to-date losses to nearly 95%.

Bitcoin BTC=BTSP fell 2.2% slipping below $16,000. Sterling GBP= was swaying at $1.1747, down 0.74% on the day, having risen 4% in the previous two sessions ahead of the Autumn Statement on Thursday when Britain's finance minister Jeremy Hunt is expected to set out tax rises and spending cuts.

The Japanese yen JPY= weakened 0.60% versus the greenback at 139.63 per dollar, while the euro EUR= was down 0.47% to $1.0303.

The risk-sensitive Australian AUD=D3 and New Zealand NZD=D3 dollars slipped, giving up some gains made after China moderated its zero COVID strategy.

On Sunday, Reuters reported that Chinese regulators have told financial institutions to extend more support to property developers to shore up the struggling real estate sector.

China's yuan rose to a near two-month high against the dollar on Monday, after the central bank lifted its official guidance fixing by the most since 2005 when Beijing abandoned the currency's decade-old peg against the greenback.

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	Currency bid prices at 0147 GMT 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	   EUR=EBS	$1.0328		$1.0347	 -0.18%		 -9.15%	  +1.0368	 +1.0315 
 Dollar/Yen		JPY=EBS	139.1150	   138.7350	+0.28%		 +20.96%	 +139.7300   +138.9200 
 Euro/Yen		 																			 
 Dollar/Swiss	  CHF=EBS	0.9442		 0.9413	  +0.33%		 +3.54%	  +0.9448	 +0.9425 
 Sterling/Dollar   GBP=D3	 1.1792		 1.1835	  -0.39%		 -12.83%	 +1.1852	 +1.1767 
 Dollar/Canadian   CAD=D3	 1.3258		 1.3251	  +0.06%		 +4.87%	  +1.3308	 +1.3240 
 Aussie/Dollar	 AUD=D3	 0.6689		 0.6707	  -0.30%		 -8.01%	  +0.6720	 +0.6668 
 NZ				NZD=D3	 0.6101		 0.6121	  -0.37%		 -10.91%	 +0.6127	 +0.6070 
 Dollar/Dollar																				   

All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX

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World FX rates	https://tmsnrt.rs/2RBWI5E 

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