By Ankur Banerjee
       SINGAPORE, July 3 (Reuters) - The yen remained hunkered
just below the psychologically important barrier of 145 per U.S.
dollar on Monday, while the dollar was on the back foot after
U.S. economic data last week showed slightly easing inflation
and consumer spending. 
    The yen weakened 0.03% to 144.38 per dollar in
early Asian hours to kick start the second half of the year
having dropped 9% against the dollar in the first six months of
the year. 
    Against the euro, the yen was hovering at
157.495, below the 15-year low of 158 it touched last week. It
was at 183.47 per sterling, just below the
seven-and-a-half-year low of 183.86 it hit on Friday.
    The Asian currency briefly passed 145 per dollar on Friday,
hitting a near eight-month low of 145.07 as investors keep an
eye on whether Japanese authorities will intervene in the
currency market.
    Finance Minister Shunichi Suzuki on Friday said Japan would
take appropriate steps in response to excessive yen weakening,
in the latest comment from government ministers and officials.
    "Intervention is best conceived of as an escalation ladder,"
 said Marc Chandler, chief market strategist at Bannockburn
Forex. 
    "Among the highest rungs is the coordinated intervention...
The low rungs on the escalation ladder are different types of
verbal intervention."
    Japan bought yen in September, its first foray in the market
to boost its currency since 1998, after a Bank of Japan (BOJ)
decision to maintain ultra-loose policy drove the yen as low as
145 per dollar. 
    It intervened again in October after the yen plunged to a
32-year low of 151.94.
    Still, business sentiment improved in the second quarter as
easing supply constraints and the removal of pandemic curbs
lifted factory output and consumption, a central bank survey
showed, a sign the economy was on course for a steady recovery.
    Investor focus this week will be on the minutes of the U.S.
Federal Reserve's June meeting due on Wednesday. 
    The central bank decided to leave interest rates unchanged
in its June meeting but hinted that borrowing costs may still
need to rise by as much as half of a percentage point by the end
of the year.
    Data on Friday showed cooler-than-expected inflation in May,
while consumer spending abruptly decelerated, providing further
evidence that the Fed's hikes are having their desired effect.
    The personal consumption expenditures (PCE) price index
gained 0.1% for the month after a 0.4% rise in April. It
advanced 3.8% on an annual basis, slowing from a revised 4.3%
the prior month.
    The PCE gauges were still well above the Fed's 2% inflation
target.
    "The U.S. economy is not slowing as forecast," Citi
strategists said in a client note. "Surprisingly strong job
growth is keeping labour markets tight while providing the
nominal spending power to drive services consumption."
    Markets are pricing in a 84% chance of the Fed hiking rates
by 25 basis points in its July meeting, CME FedWatch tool
showed.
    Investor attention will also be on the Labor Department's
Job Openings and Labor Turnover Survey, or JOLTS and monthly
payrolls report due later this week that will help gauge the
labour market in the United States. 
    Against a basket of currencies, the dollar was at
102.94, having dropped 0.4% on Friday. The euro eased
0.04% to $1.0906. Sterling last fetched $1.2694, down
0.08% on the day.
   In cryptocurrencies, bitcoin last rose 1.02% to
$30,699.00. Ethereum last rose 0.88% to
$1,943.94.
    The Australian dollar fell 0.14% to $0.666, while
the New Zealand dollar rose 0.16% to $0.613.
    
    ========================================================
    Currency bid prices at 0142 GMT
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar                  $1.0915        $1.0909     +0.06%         +1.87%      +1.0917     +1.0901
 Dollar/Yen                   144.4450       144.3350    +0.10%         +10.10%     +144.5300   +144.4650
 Euro/Yen                                                                                     
 Dollar/Swiss                 0.8949         0.8951      +0.05%         -3.15%      +0.8957     +0.8952
 Sterling/Dollar              1.2704         1.2692      +0.01%         +4.96%      +1.2705     +1.2680
 Dollar/Canadian              1.3241         1.3250      +0.00%         -2.21%      +1.3257     +1.3243
 Aussie/Dollar                0.6664         0.6661      +0.06%         -2.23%      +0.6667     +0.6649
 NZ                           0.6142         0.6137      +0.08%         -3.27%      +0.6144     +0.6125
 Dollar/Dollar                                                                                  
                                                                                                
    
All spots
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Volatilities 
Tokyo Forex market info from BOJ 


    
 (Reporting by Ankur Banerjee in Singapore; Editing by
Christopher Cushing)