Dollar near two-week high as Warsh boosts rate-hike bets; yen slips past 160

HONG KONG, Aug 31 : The dollar held steady near a two-week high on Monday as markets ramped up bets on a rate hike after hawkish remarks by Federal Reserve Chair Kevin Warsh, while the yen slipped back through the closely watched 160-per-dollar level. The U.S. central bank will "have work to do" if policymakers don't get the confidence they need that inflation is heading down to 2 per cent, Federal Reserve Chairman Kevin Warsh said on Friday, in his clearest indication yet that further tightening may be needed to curb price pressure. The comments fuelled bets on a September rate hike. Markets raised the implied probability of a move next month to 57 per cent, while yields on interest-rate-sensitive two-year U.S. Treasury notes rose to a more than one-month high of 4.33 per cent. "Warsh's d