The dollar eased on Wednesday but still clung near a two-month high against the yen, supported by speculation that the U.S. Federal Reserve is on course to start reducing its stimulus as early as December.
After surprisingly strong U.S. October payroll data on Friday had many investors reassessing the timing of a Fed tapering, attention is now on the comments that nominee Fed President Janet Yellen will make at her Senate confirmation hearing on Thursday.
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"Since Yellen has become a candidate to succeed Ben Bernanke, she has hardly spoken about her view on monetary policy. Because the market doesn't seem to doubt she is a dove, there's a chance she is not as dovish as expected," said Ichiro Asai, economist at Daiwa Securities.
The dollar eased 0.2 percent to 99.46 yen, after having set a two-month high of 99.80 yen on Tuesday. The greenback is still up about 0.4 percent so far this week, as the U.S. currency drew strength from a surge in U.S. bond yields.