The dollar drifted sideways in Asian Market opening trades today, giving some relief to the yen and other major currencies after a sharp rally to a seven-week high last week, as investors paused to assess the interest rate path outlook for the United States. Bets for another jumbo cut in November have been taken off the table after the latest nonfarm payroll data indicated a more resilient picture. Markets now have about an 85% chance of a quarter basis point reduction priced in, as well as a slim probability the Federal Reserve will leave rates unchanged. U.S. inflation data this week and upcoming corporate earnings will be key to sustaining the U.S. dollar rebound and will need to reinforce the US exceptionalism narrative. The dollar index was flat at 102.490, not far from Friday\'s seven-week high of 102.69. In major currencies today, Dollar/yen traded in a narrow range, last hovering around 148.20 yen, after touching a seven-week high of 149.10 on Monday. The euro steadied around $1.0977, while the pound was at $1.3101, close to the more than three-week low of $1.30595 it touched on Monday. The offshore yuan stabilised around 7.0695 per dollar. The Indian rupee opened marginally stronger at 83.94/95 against its previous session’s close of 83.96/97 and is expected to trade between 83.90 – 83.95 band today.
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