Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar lower as Powell reaffirms pledge to not raise rates too quickly

EconomyJun 22, 2021 04:29PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado November 3, 2009. REUTERS/Rick Wilking/File Photo

By Karen Brettell

NEW YORK (Reuters) - The U.S. dollar held at lower levels on Tuesday after Federal Reserve Chair Jerome Powell reaffirmed the U.S. central bank's intent to encourage a "broad and inclusive" recovery of the job market, and not to raise interest rates too quickly based only on the fear of coming inflation.

"We will not raise interest rates pre-emptively because we fear the possible onset of inflation. We will wait for evidence of actual inflation or other imbalances," Powell said in a hearing before a U.S. House of Representatives panel.

The dollar had surged after the Fed on Wednesday said that policymakers are forecasting two rate hikes in 2023. That led investors to re-evaluate bets that the Fed will let inflation run at higher levels for a longer time before hiking rates.

“I didn’t think he elaborated any further on the timeline. He certainly didn't make it more urgent either,” said Lou Brien, a market strategist at DRW Trading in Chicago.

The dollar index fell 0.20% to 91.733. It is holding below a two-month high of 92.408 reached on Friday.

The euro gained 0.19% to $1.1940 and the dollar gained 0.28% to 110.65 Japanese yen.

Fed officials have expressed differing views on when it may be appropriate to tighten monetary policy as inflation rises.

The U.S. central bank may be in a position to start reducing its extraordinary support of the U.S. economy by late this year or early next year, San Francisco Federal Reserve President Mary Daly said on Tuesday.

Fed officials will keep a close eye on economic data to determine when it will be appropriate to start adjusting monetary policy and any conversation about when to adjust interest rates is still far off, said New York Fed Bank President John Williams.

"Inflation pressures (are) a little larger than expected on the back of the reopening, but the Fed still feels that a good majority of those pressures won’t be sustained," said Chuck Tomes, associate portfolio manager at Manulife Asset Management in Boston.

Producer price inflation data on Friday is the next major economic focus.

Bitcoin recovered from a five-month low on Tuesday in a volatile session in which it fell below $30,000, extending losses sparked a day earlier when China's central bank deepened a crackdown on cryptocurrencies.

It was last at $32,599, up 2.95% on the day.

Dollar lower as Powell reaffirms pledge to not raise rates too quickly
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Ur Daddy
Ur Daddy Jun 22, 2021 5:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
not raise too quickly is still raise. people work in wall street ain't got many brain cells, we?
Jouni Matero
Jouni Matero Jun 22, 2021 1:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Manipulative forces lift market up whatever JP says (lies).
Forex Harbingers
Forex Harbingers Jun 22, 2021 1:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They have all lied, and most have eaten it right up and played right onto their hands. But anyone with even a basic understanding of economics would have seen different
Mario tragik
Mario tragik Jun 22, 2021 12:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
await powell testimony ... get out of here. what new is he going to say? nothing, zip, zero.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email