Dollar Rises Against Major Rivals After Powell's Jackson Hole Speech
(RTTNews) - The U.S. dollar climbed in the New York session on Friday, erasing early losses, as Federal Reserve Chairman Jerome Powell signaled willingness to raise rates further to bring down inflation.
In his speech at the Jackson Hole symposium, Powell signaled the possibility of another rate hike as inflation remains too high.
"We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective."
Powell promised to proceed carefully with future monetary policy decisions, calling restoring price stability essential to achieving the Fed's dual mandates of 2 percent inflation over time and maximum employment.
The Fed's monetary policy committee is next scheduled to meet September 19-20, with the central bank widely expected to leave interest rates unchanged.
The dollar index, which dropped to 103.74 around mid morning, climbed to 104.45 after Powell's speech, but pared some gains subsequently. It was last seen at 104.21, up 0.22 percent from the previous close.
Against the Euro, the dollar firmed to 1.0795 from 1.0843. The dollar strengthened to 1.2576 against Pound Sterling. Against the Japanese currency, the dollar is up, fetching 146.46 yen a unit. The dollar rose to a nine-month high of 146.64 before paring some gains.
The dollar is trading at 0.6403 against the Aussie after having strengthened to 0.6380 earlier in the session. The dollar is flat at CHF 0.8847 against Swiss franc. Against the Loonie, the dollar up, fetching C$1.3604 a unit.
DAX Down In Negative Territory In Cautious Trade
Sensex, Nifty Rally On GST Reforms Push
Eurozone Trade Surplus Declines Sharply In June
Thai Economic Growth Slows In Q2
European Shares Subdued With Focus On Ongoing Ukraine Talks
Asian Shares Rise As Alaska Talks Show Progress
Yen Falls Amid Risk-on Mood
