The dollar index, which tracks the greenback’s performance against six currencies, has risen steadily over the past two weeks and is poised to hit a two-decade high of 109.29 hit in mid-July.
However, after posting small gains earlier in the session, it fell a quarter point to 108.210.
“(Powell) will likely focus on short-term challenges and strive to leave no doubt about the Fed’s resolve in fighting inflation,” Esther Reichelt, a currency analyst at Commerzbank, said in a note. “If he pulls it off convincingly, he could support the dollar, at least in the short term.”
Fed officials have not commented on the possible size of interest rate hikes in their speeches at the symposium so far, but have said they will raise rates to keep inflation at bay.
While, The Federal Reserve is due to receive two more key reports on inflation and more data on employment before its scheduled meeting on September 20-21.
In another order, in Europe, the escalation of energy prices derived from the invasion of Ukraine by Russia darkened the economic outlook and has weighed on the euro and the pound sterling, causing them to fall more than 10% against the dollar. this year.
Sterling was trading flat at $1.18410, having earlier lost as much as 0.5%, as British regulators confirmed consumers’ energy bills would rise by 80% and warned of a “crisis” requiring government action. urgent.
The euro was up 0.4% at $1.00120, breaking parity again, after spending much of the week below this psychological level.
While the dollar gained 0.3% against the Japanese yen, to 136.905 units per dollar.
Source: Ambito
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