U.S. Dollar Higher After Powell's Hawkish Comments

(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 greenback climbed to 9-1/2-month highs of 146.63 against the yen and 0.5886 against the kiwi, from Thursday's close of 145.82 and 0.5922, respectively. The greenback is seen facing resistance around 147.5 against the yen and 0.56 against the kiwi.

The greenback advanced to a 1-1/2-month high of 0.8875 against the franc and more than a 2-month high of 1.2547 against the pound, from yesterday's closing values of 0.8843 and 1.2598, respectively. The greenback may challenge resistance around 0.90 against the franc and 1.23 against the pound.

The greenback appreciated to a 1-week high of 0.6379 against the aussie and near a 3-month high of 1.3640 against the loonie, from yesterday's closing quotes of 0.6417 and 1.3581, respectively. Next key resistance for the greenback may be located around 0.62 against the aussie and 1.38 against the loonie.

The greenback hovered at 1.0765 against the euro, its highest level since June 13. The pair was worth 1.0810 at yesterday's close. If the currency rises further, 1.06 is likely seen as its next resistance level.