SINGAPORE - The dollar nursed a sharp pullback against Asian currencies on Thursday, after softer-than-expected global economic data muddied the interest rate outlook and pushed down U.S. yields ahead of the Federal Reserve's Jackson Hole symposium.
"Weaker than expected ... data led markets to scale back their expectations for U.S. policy," said Commonwealth Bank of Australia currency strategist Carol Kong, with jobless claims the next focus ahead of Fed Chair Jerome Powell's Friday speech. Further moves for the major pairs were only slight in Asia morning trade, leaving the Aussie at $0.6479, the kiwi at $0.5976 and the yen firming slightly to 144.64 per dollar.
Ten-year U.S. yields tumbled 13 basis points to 4.198%, their sharpest one-day slide in more than three months, which has taken some of the heat out of recent rises.