Dollar picks up steam; yen falls past 149 per dollar

By Samuel Indyk and Brigid RileyLONDON (Reuters) -The U.S. dollar rose on Thursday but held below a 12-week high reached earlier in the week, as traders digested comments from policymakers in the previous session that suggested rates would remain higher for longer.

On Wednesday, several Federal Reserve speakers gave a range of reasons for feeling little urgency to start easing policy in the United States soon, or to move quickly once they do.

“Central banks need to be convinced that, not only will inflation come down, but that it will stay down,” said Colin Asher, senior economist at Mizuho.

The market is pricing in around a 20% chance the Fed will begin to cut rates in March, down significantly from the start of the year, and around a 60% chance of a 25 basis point cut in May, according to CME Group’s Fed Tool.

The dollar index was last up 0.2% at 104.23, having reached 104.60 on Monday, its highest level since November 14, propelled by Friday’s blowout jobs report.