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Greenback bounces moderately after drop

On Wednesday, the greenback managed to edge off 7-week minimums against the Japanese yen as well as the common currency, following hawkish comments from Fed officials, though skepticism regarding the Fed's readiness to tighten policy limited the bounce.

The greenback nudged up 0.2% to 100.530 yen after dropping to 99.550 overnight, its lowest outcome since June 24, when post-Brexit referendum turmoil had boosted the safe-haven Japanese yen.

The euro stood still at $1.1279 following an overnight leap to $1.1323, its highest result since June 24.

The US dollar was on the defensive since late last week as dismal American indicators dented prospects of a near-term Fed rate lift.

Uncertainty over Japan’s monetary policy was also seen backing the Japanese yen. The Bank of Japan, which underwhelmed financial markets in July with what many traders deemed were token easing steps, is going to conduct a comprehensive policy review in September.

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