TOKYO, Aug 26 Reuters The dollar sank to a threeweek trough against the yen on Monday as Federal Reserve Chair Jerome Powell39;s emphatic dovish shift contrasted sharply with Bank of Japan chief Kazuo Ueda39;s steadfastly hawkish tone.

The U.S. currency hovered near its lowest in 13 months against the euro, and sagged closer to levels last seen in March 2022 versus sterling, with Bank of England head Andrew Bailey39;s comments that it was too early to declare victory over inflation signaling a less aggressive stance on interest rate cuts than the Fed.

The dollar slumped as much 0.66 to 143.45 yen for the first time since Aug. 5 before trading down 0.31 as of 0517 GMT.

Sterling eased slightly to 1.31995 after jumping as high as 1.32295 on Friday for the first time in 17 months.

Although Fed officials had sounded increasingly dovish in the lead up to the Fed39;s annual Jackson Hole symposium, Powell on Friday used stronger language than his peers when delivering his keynote speech, said Tapas Strickland, head of market economics at National Australia Bank.

Importantly, there was a notable absence of caveats such as 39;gradualgradualism39;, effectively keeping the door open to larger ratecut increments, which is likely what excited markets, Strickland said.

Earlier Friday, in parliamentary testimony in Tokyo, Ueda stuck to the script of the BOJ needing to adjust the degree of easing central bankspeak for a further increase in the policy rate from a low level and he…