Wed, 28 Jul 2021

U.S. dollar edges up after Powell remarks

Xinhua
24 Jun 2021, 06:18 GMT+10

NEW YORK, June 23 (Xinhua) -- The U.S. dollar inched higher in late trading on Wednesday as market participants digested Federal Reserve Chairman Jerome Powell's comments on inflation.

The dollar index, which measures the greenback against six major peers, was up 0.04 percent at 91.7995.

In late New York trading, the euro decreased to 1.1928 U.S. dollars from 1.1936 dollars in the previous session, and the British pound increased to 1.3963 dollars from 1.3941 U.S. dollars in the previous session. The Australian dollar was up to 0.7573 U.S. dollar from 0.7552 dollar.

The U.S. dollar bought 110.96 Japanese yen, higher than 110.62 Japanese yen of the previous session. The U.S. dollar rose to 0.9183 Swiss franc from 0.9182 Swiss franc, and it decreased to 1.2303 Canadian dollars from 1.2320 Canadian dollars.

Powell said on Tuesday that the central bank will not raise interest rates preemptively based on inflation fears, reiterating recent inflation surge is transitory.

"We will not raise interest rates preemptively because we think employment is too high, because we fear the possible onset of inflation. Instead, we will wait for actual evidence of actual inflation or other imbalances," the Fed chief told lawmakers at a hearing before the House Select Subcommittee on the Coronavirus Crisis.

Powell said a substantial part of the recent rise in inflation comes from categories that are directly affected by the reopening of the economy, such as used cars and trucks in particular.

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