Dollar steady as Fed chair announces dovish stance
The dollar was steady on early Thursday in Europe after yesterday’s drop. The Federal Reserve’s chair, Jerome Powell, announced it was too early to withdraw the central bank’s monetary support for the economy.
The Dollar Index that measures the greenback against other major currencies traded marginally lower at 92.350, falling back from the high of 92.832 recorded earlier this week.
The USD/JPY pair inched down 0.1% to 109.88, while the EUR/USD pair was marginally lower at 1.1832.
GBP/USD pair slightly fell to 1.3851, while the AUD/USD pair shed 0.2% to 0.7463.
Some Federal Open Market Committee members suggested the central bank to limit its massive bond-buying program. This came after a surge in inflation in the United States, with consumer and producer prices rising 5.4% and 7.3%, respectively, in June.
However, Powel considered the spike in inflation as temporary, reiterating acting prematurely would be a mistake. The chair said tapering bond buying was “still a ways off” considering the economic conditions.