FX round-up: Brazilian real, Aussie knocked back

Carry currencies gave back part of their recent gains as somewhat hawkish rhetoric form two Fed officials sufficed to eat into their yield advantage.

Speaking on Friday afternoon, Boston Fed President Eric Rosengren said the risks to the economic outlook were incresaingly "two-edged".

His remarks, and those from Dallas Fed president Robert Kaplan pushed the US dollar index higher by 0.38% to 95.35, hitting an intra-session high at 95.58.

Against Brazil´s real the greenback gained 1.86% to 3.2741, with the Aussie trading down by 1.33% to 0.7541 versus the US currency unit.

Later in the day, Kaplan added that "long-term economic headwinds meant the Federal Reserve could afford to be "patient and deliberate in its actions".

"The likely path of rates is going to be flatter, much flatter than we’ve ever experienced historically," Kaplan said.

"I think the markets have gotten plenty of notice that we are looking for opportunities to remove accommodation," he said.

Trading in the major currency pairs was considerably more staid, with the European single currency off by 0.24% to 1.1233 and the US dollar 0.20% stronger against the Japanese yen at 102.69.

Cable was in fact higher, riisng 0.21% to 1.3267.

The market is now looking ahead to a speech scheduled for Monday by the Fed’s Lael Brainard, a leading 'dove', for any signs of a change in her stance.

Fed funds futures were left pricing in 30% odds of a September rate hike by the close of trading on Friday, after having indicated as much as a 38% probability of such a scenario at one point in Friday´s session.