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Twanano zitha
Jun 25, 2022 10:31AM ET
this is bad
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Dollar Edges Lower as Investors Weigh Powell Testimony
© Reuters
By Scott Kanowsky
Investing.com -- The U.S. dollar slipped slightly on Friday, as investors remained cautious of the impact of tighter central bank policies around the world aimed at curbing soaring inflation.
As of 02:35 AM EST (0635 GMT), the U.S. dollar index - which tracks the greenback against a basket of six currencies - was marginally in the red, down 0.16% to 104.27. The index is trading below a two-decade peak of 105.79 reached on June 15 following a 75 basis point interest rate hike by the Federal Reserve.
The dollar is moving lower from that elevated level due to concerns that such aggressive monetary tightening may end up sparking a recession.
Fed Chair Jerome Powell warned in a testimony on Capitol Hill earlier this week that while it does not intend to cause a wider slowdown, "it's certainly a possibility" despite his confidence that the U.S. economy will be able to withstand a sharp rise in borrowing costs. On Thursday, Powell added that the Fed has an "unconditional" commitment to fighting inflation.
The U.S. 10-year Treasury yield eased to 3.087% in the wake of Powell's comments.
Meanwhile, GBP/USD remained firm, edging slightly higher by 0.05% to $1.22, following data on Friday that showed U.K. retail sales volumes declined by 0.5% in May, but were above analyst estimates.
Elsewhere, EUR/USD rose 0.19% to $1.05 ahead of statements from European Central Bank speakers later today and business confidence data in Germany.
USD/JPY was down 0.11% to trade at ¥134.79 after Japanese inflation came in above the Bank of Japan's 2% target, casting some doubt on the bank's loose monetary policy stance.
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Comments (3)
marlow seay
Jun 24, 2022 6:32AM ET
this is hog was....what about when powell said " the FED will be flexible and respond to QT if it Warrants "
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Francis Lim Wei
Jun 24, 2022 4:37AM ET
I support your works chair Powell, please rate hike fast so that it's less painfull. after economy recovers please lower the rates
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jack frost
Jun 24, 2022 4:37AM ET
Why would they lower the rates again, thats what fueled the greed to where were at ? Just for thought can anyone here predict a rough date for when the upcoming recession will be completely over ?
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