Dollar unfazed even as Fed cut comes back into view

By Ankur Banerjee

SINGAPORE (Reuters) -The U.S. dollar was steady on Tuesday as investors deliberated the chances of the Federal Reserve cutting interest rates next month after dovish comments from policymakers while the frail yen remained on intervention watch.

Fed Governor Christopher Waller said the job market is weak enough to warrant another quarter-point rate cut in December, though action beyond that depends on a flood of impending data delayed by the government shutdown.

Waller’s comments echoed those of New York Fed President John Williams from Friday, helping shift expectations of near-term rate cuts. Traders are now pricing in an 81% chance of a cut next month versus 42% a week earlier, CME FedWatch showed.

“There is an intense focus on the stance of each respective Fed vote