The dollar was steady against the yen during Asian trading Tuesday as investors continued to mull the likely timing of the Federal Reserve’s tapering of its asset-purchase program following last Friday’s stronger-than-expected U.S. jobs report.
Trading was cautious after a string of speeches by three Federal Reserve presidents suggested the central bank could start scaling back its $85-billion-a-month stimulus program as early as this month. The next Fed meeting will take place next week.
“It’s still hard to tell when the Fed may begin its roll-back,” said Kengo Suzuki, forex strategist at Mizuho Securities, adding that he still only saw a small chance of the Fed trimming its measures beginning in December. “I’d say there’s a 10% chance the Fed will begin tapering in December, a 50% chance it will do so in January and a 40% chance in March,” he said.