The US currency remained 0.5% firmer against the yen, while the yuan breached a key threshold of 6.9 per dollar and the British pound hit a new two-and-a-half-year low.
The euro managed to regain some ground and was up 0.3% at $0.9993 as dovish comments from the European Central Bank raised expectations of a big rate hike in September.
Powell said Friday at the Jackson Hole central banking conference that the Fed will raise rates as necessary to restrain growth, and that they will remain high “for some time” to reduce inflation, which is being more than three times higher than the Fed’s 2% target.
“Powell’s comments supported the expectation of a higher Fed funds rate for a longer period,” said Kenneth Broux of Société Générale. “The assumption that the Fed would start cutting rates in mid-2023 is premature.”
Source: Ambito
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