© Reuters. A woman holds US dollar bills in this illustrative photo taken on May 30, 2022. Photo: Dado Ruvic/Reuters.
NEW YORK (Reuters) – The dollar fell on Wednesday, after hitting a three-month high earlier in the day, as investors adjusted positions on the possibility of a higher interest rate hike for longer after Federal Reserve Chairman Jerome surprised Markets debuted on Tuesday with a more hawkish stance on monetary policy.
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.
It declined in its latest trading by 0.09 percent against a basket of currencies, recording 105.54, after reaching 105.88 earlier on Wednesday, the highest level since December 1. That level was up from the nine-month low of 100.80 set on Feb. 1, but far below the 20-year high set on Sept. 28 of 114.78.
And it increased 0.03 percent, recording $ 1.0551, after falling earlier to $ 1.0524, and it 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 it 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.
(Prepared by Salma Najm for the Arabic Bulletin – Edited by Mahmoud Abdel-Gawad)
