The dollar rose to a three-month high against the yen on speculation Federal Reserve
officials speaking today will highlight the risks of inflation.
Fed Board Vice Chairman Donald Kohn
and Fed Bank of St. Louis President Jim Bullard are scheduled to deliver
speeches. Treasury Secretary Henry Paulson this week said he would ``never''
rule out currency intervention.
The yen remained lower even after a government report
showed Japan's
economy expanded 4% last quarter, faster than the government initially
reported, and surpassing the 3.8% forecast by economists in a survey.
Bank of
America Corp. lowered its forecast for the yen as the Bank of Japan is likely
to maintain a neutral stance while U.S. and European policy makers
signal they may raise rates.
EUR/USD was under
pressure before rebounding to $1.5500.
GBP/USD slowly
rose from $1.9530 to $1.9570.
USD/JPY tested
highs on Y107.70 and retreated to Y107.40.
In Europe focus will be on UK labor market data at 08:30 GMT. There are no key US economic reports today.