FX Action: The dollar edged out fresh highs against some currencies
FX Action: The dollar edged out fresh highs against some currencies in Asia, with USD-JPY making to a four-week high at 111.77, and EUR-USD seeing a two-session low at 1.1141. The narrow trade-weighted USD index logged a two-session high at 97.31. The buck fared less well against the commodity currencies. Markets still seem to be digesting last week's more hawkish than anticipated policy guidance from the Fed, which was followed up yesterday by Fed member Dudley making upbeat remarks on the U.S. economy, though his colleague Evans (a dove by reputation) said he wanted more data on inflation. Forex markets seem to be buying into the Fed's apparent overlooking of what it sees as a temporary soft patch in inflation data.