US Dollar on the defensive
TOKYO (Reuters) – FxPremiere.com The dollar was trapped on the back foot against major peers on Wednesday as markets wait on comments from Federal Reserve Chair Jerome Powell, who is likely to renew a commitment to ultra-easy policy. Dollar on the defensive
The greenback held declines against riskier currencies, with pandemic recovery hopes getting a boost as the International Monetary Fund upgraded its forecast for 2021 global growth.
“The stronger the world economic outlook, the weaker the U.S. dollar,” said Joseph Capurso, currency analyst at Commonwealth Bank of Australia (OTC:CMWAY) in Sydney.
“Powell is going to make clear that they don’t see any near-term exit from their very easy policy stance, and that’s going to pull the dollar down.”
The dollar index was little changed at 90.172 early in the Asian session, holding Tuesday’s 0.2% decline.
The greenback traded at 103.61 yen, little changed after a 0.1% slide overnight.
The euro was mostly flat at $1.21625 after rising around 0.1% in the previous session.
The riskier Aussie dollar gained 0.1% to 77.51 U.S. cents, adding to Tuesday’s 0.5% rally.
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