U.S. Dollar Drops As Powell Signals Progress On Softening Of Price Pressures
July 02 2024 - 7:52AM
RTTF2
The U.S. dollar weakened against its major counterparts in the
New York session on Tuesday, as Federal Reserve Chair Jerome Powell
signalled progress on cooling in inflation.
Speaking at the ECB Forum in Portugal, Powell said that policy
makers want to understand whether recent weaker inflation readings
indicate a true picture of underlying price pressures.
The Fed chief acknowledged that the latest inflation readings
suggest that Fed officials are getting back on the disinflationary
path.
"We want to be more confident that inflation is moving
sustainably down toward 2% before we start the process of reducing
or loosening policy," Powell noted.
Powell's remarks reinforced hopes that the Fed will start
reducing interest rates this year.
The dollar gained traction in the previous session as the
Supreme Court ruled that presidents have absolute immunity from
prosecution for core official acts.
The greenback eased to 161.26 against the yen and 0.9031 against
the franc, from an early 38-year high of 161.74 and nearly a 5-week
high of 0.9049, respectively. The greenback is poised to challenge
support around 147.00 against the yen and 0.88 against the
franc.
The greenback fell to 1.0746 against the euro and 1.2685 against
the pound, from an early 4-day high of 1.0709 and a 5-day high of
1.2615, respectively. The greenback is likely to face support
around 1.10 against the euro and 1.31 against the pound.
The greenback retreated to 1.3687 against the loonie, 0.6670
against the aussie and 0.6079 against the kiwi, from an early
2-week high of 1.3755, 4-day high of 0.6634 and a 1-1/2-month high
of 0.6047, respectively. The currency is seen finding support
around 1.34 against the loonie, 0.68 against the aussie and 0.63
against the kiwi.
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