NEW YORK: The dollar was flat to slightly higher in choppy trading on Wednesday, as investors paused selling the greenback, a day after Federal Reserve Chair Jerome Powell did not significantly change his US interest rate outlook despite a strong US jobs report last week.
The greenback’s outlook remained tilted to the downside as the Fed nears the end of its tightening cycle and the markets price in rate cuts by the end of the year, analysts said.
In a question-and-answer session before the Economic Club of Washington on Tuesday, Powell said interest rates might need to move higher than expected if the US economy remained strong, but reiterated he felt a process of “disinflation” is underway.
The greenback slipped as Powell spoke.
“The dollar weakened because Powell was not hawkish. There were a few nuggets in his speech that suggested that the jobs report has not materially shifted the Fed’s outlook,” said Thierry Wizman, global FX and rates strategist at Macquarie in New York.
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