Powell said the Fed would likely need to raise interest rates more than expected after recent strong data and that the bank was prepared to move further if the “total” of incoming data indicated the need for more aggressive measures to control inflation.
This prompted dealers and investors to reconsider their interest rate expectations.
The dollar index fell in the latest trading by 0.09 percent against a basket of currencies, recording 105.54, after reaching 105.88 earlier in the day, the highest level since the first of December. That level is up from the nine-month low of 100.80 recorded on February 1, but much lower than the 20-year high of 114.78 set on September 28.
The euro increased 0.03 percent, recording $ 1.0551, after falling earlier to $ 1.0524, and is currently trading just over its lowest level this year at $ 1.04820 recorded on the sixth of January.
The dollar fell 0.26 percent to 136.80 yen, after earlier reaching 137.90, the highest level since December 15.
And sterling increased 0.06 percent, recording $ 1.1834, after falling earlier to $ 1.18105, the lowest level since November 21.
The Australian dollar rose 0.23% to $0.6600, after earlier reaching $0.6568, its lowest level since November.
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