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U.S. dollar advances after Powell's speech

NEW YORK, Aug. 25 (Xinhua) — The U.S. dollar elevated in late buying and selling on Friday, after Federal Reserve Chair Jerome Powell signalled that the central financial institution may have to lift rates of interest additional to make sure inflation is contained.

The dollar index, which measures the dollar in opposition to six main friends, was up 0.09 % to 104.0776 after Powell’s remarks.

“Although inflation has moved down from its peak … it remains too high,” Powell mentioned Friday at an annual financial symposium in Jackson Hole, Wyoming. “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.”

Experts have their very own interpretations of Powell’s speech.

In June, the Fed briefly halted its battle in opposition to inflation because of issues over the impression of banking stresses on lending. There is a risk that the central financial institution would possibly choose to pause as soon as extra in September, because it awaits further information amid uncertainties.

“We think that the Fed is more likely to take a wait-and-see approach with the data and try to understand a little bit more about why the labor market is remaining so strong, despite the inflationary experience that we’ve had and the higher interest rates in the economy,” mentioned Sinead Colton Grant, head of BNY Mellon investor options.

After Powell’s speech, shares bounced between features and losses earlier than transferring extra firmly into optimistic territory. The U.S. two-year Treasury yields rose 3.8 foundation factors to five.054 %, whereas 10-year yields have been little modified at 4.239 %.

In late New York buying and selling, the euro was right down to 1.0808 U.S. {dollars} from 1.0809 {dollars} within the earlier session, and the British pound was right down to 1.2596 U.S. {dollars} from 1.2607 {dollars}.

The U.S. dollar purchased 146.3690 Japanese yen, greater than 145.8610 Japanese yen of the earlier session. The U.S. dollar fell to 0.8838 Swiss francs from 0.8845 Swiss francs, and it elevated to 1.3591 Canadian {dollars} from 1.3575 Canadian {dollars}. The U.S. dollar elevated to 11.0306 Swedish krona from 10.9889 Swedish krona.