The U.S. dollar firmed up against most of its peers on Tuesday, recovering from recent losses.
The greenback moved higher in the Asian session, but faltered later in the morning after the Federal Reserve Chairman Jerome Powell’s testimony before the Senate Banking Committee. However, it edged higher subsequently, and was up above the flat line around late afternoon.
Powell told the members that the bank is likely to maintain ultra-easy monetary policy for the foreseeable future.
Powell’s prepared remarks today largely mirrored recent assessments, indicating interest rates will remain at near-zero levels and the Fed will continue its asset purchases at the current rate until “substantial further progress” has been made toward its goals of maximum employment and price stability.
“The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved,” Powell said.
The Fed chief said annual inflation remains below the central bank’s 2% target and reiterated monetary policy is likely to remain unchanged until inflation is on track to moderately exceed 2% for “some time.”
Powell stressed that the Fed remains committed to using its full range of tools to support the economy and to help ensure the recovery will be as robust as possible.
The dollar index rose to 90.26 before falling to around 90.00, reacting to Powell’s comments that the bank will likely maintain ultra-easy monetary policy for the foreseeable future. A little while ago, the index was at 90.17, up 0.18% from previous close.
Against the Euro, the dollar firmed up to $1.2146, gaining 0.11%.
The Pound Sterling was stronger against the dollar, fetching $1.4112 a unit, compared with $1.4065 on Monday.
The Yen weakened to 105.26 a dollar, sliding from 105.08.
Against the Aussie, the dollar gained marginally with the AUD-USD pair trading at $0.7911.
The Swiss franc weakened by over 1% to 0.9055 a dollar.
The Loonie strengthened against the dollar, firming up to C$1.2593 from C$1.2615.
The material has been provided by InstaForex Company – www.instaforex.com
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