Dollar drifts as traders weigh rate path; yen fragile

The US dollar edged upwards by 0.049% to 102.33 on 25 June, while the yen remained fragile. Last week, a week of central bank meetings saw the Federal Reserve leave rates unchanged while suggesting that further hikes were on the horizon. Meanwhile, the European Central Bank raised interest rates and the Bank of Japan continued with its ultra-easy policy. The events mean that the market still requires convincing that the Fed will grant two more hikes this year, but investors predict there is a 72% probability of a hike by 25 basis points next month.