Dollar strengthens on Fed comments; Yen monitored closely

US dollar strengthens: The US dollar saw an uptick against major currencies on Thursday following remarks from a Federal Reserve official indicating a reluctance to cut rates amid persistent inflation concerns. 

Traders awaited key economic data amidst this backdrop.

Despite the yen holding steady around the 152 mark, attention remained focused on Japan's readiness to intervene in the currency market, following remarks from top monetary officials.

Federal Reserve Governor Christopher Waller's comments during late US trading hours on Wednesday contributed to the dollar's strength, with the dollar index remaining mostly unchanged at 104.41. 

Waller stressed the lack of urgency for a policy rate cut, influencing market expectations regarding future rate adjustments.

Market analysts interpreted Waller's remarks as a signal of the Fed's cautious approach towards inflation, potentially impacting expectations for rate cuts in 2024. 

Traders awaited US core inflation figures due on Friday, with recent economic data already boosting the dollar against the yen.

The yen saw slight gains after Japanese authorities discussed the currency's weakness, with Finance Minister Shunichi Suzuki suggesting the possibility of "decisive steps." 

Market participants remained vigilant for any signs of intervention.

Elsewhere, the euro and sterling experienced minor declines against the dollar. In the cryptocurrency market, bitcoin saw a modest increase to $69,648.86.

(With Reuters Inputs)