2023-06-21 18:18:54
The dollar fell once morest a basket of currencies on Wednesday, following Federal Reserve Chairman Jerome Powell’s comments regarding the central bank’s ongoing battle to cut inflation were less hawkish than market expectations.
Powell told US lawmakers that the battle on inflation still “has a long way to go” and that officials agree on the likely need to raise the cost of borrowing, despite the pause in raising interest rates at the most recent meeting of the Monetary Policy Committee.
While noting that inflation is still a long way from the Fed’s target level, Powell said it might make sense to raise interest rates to higher levels at a more moderate pace.
The dollar index, which measures the performance of the US currency once morest a basket of six currencies, fell 0.20 percent on the day to 102.31 as Powell testifies before the US House of Representatives Financial Affairs Committee.
The euro rose 0.35 percent to $1.0956.
And the US currency rose 0.4 percent once morest the yen to 142.015 yen, with the Japanese currency under pressure following the Governor of the Bank of Japan repeated, on Wednesday, the position of the central bank sticking to its very easy monetary policy.
The pound fell 0.17% to $1.2741, near its lowest level in a week.
The Australian dollar fell 0.07 percent to $ 0.6782, on its way to recording losses for the fourth consecutive day.
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