Until you get ... the Bank of Japan actually pushing interest rates (higher) and not just jawboning the financial markets, I don't think the yen is going to find long-lasting support.
It was slightly dollar-positive. The price component, it's still bubbling. That is of concern to the Fed.
People are looking at any interest rate sensitive components as a precursor of what's to come.
It is too early to write the dollar off just yet. I'm not convinced that the best is over for the dollar. The market has moved to a stance that is too dovish on the Fed.
Global investors still like dollar-denominated assets. The fundamentals still auger for dollar strength.
All in all, developments on Rita and the G7 statement have not made me think the dollar rally will lose momentum anytime soon.
The dollar's gains are pretty much broad-based, with losses being led by the euro.
This is drumming up fears that the damage to the economy from Hurricane Katrina will be exacerbated by Rita. Before concerns over Rita, the short-term fundamentals were positive for the dollar.
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