The safe-have yen bounced, climbing back from 24-year lows to the dollar. The risk-sensitive Australian dollar dropped, and the Korean won slid to its weakest level for 13 years.
The dollar index , which measures the currency against six key rivals, slipped 0.07% to 104.14, bringing its decline since Friday to 0.44%. It has fallen 1.54% from the two-decade peak of 105.79 reached on June 15, when the Federal Reserve raised rates by 75 basis points - the biggest hike since 1994.Markets have become increasingly concerned that the Fed's commitment to quelling red-hot inflation will spur a recession.
Overnight, Fed Chair Jerome Powell said in testimony to Congress that the central bank is fully committed to bringing prices under control even if doing so risks an economic downturn. He said a recession was "certainly a possibility," reflecting fears in financial markets that the Fed's tightening pace will throttle growth.Economists polled by Reuters expect another 75-basis-point hike for July, followed by a 50-basis-point rise for September.
"But with 75bp still on the table for July and Fed Funds set to rise above 3% by year’s end, USD interest rate support should ultimately continue to build." Westpac sees the risk of a pullback in the dollar index to the 102 level in the near term, but recommends buying at those levels.However the U.S. currency gained against the South Korean won , scaling 1,302.77 for the first time in 13 years and last trading flat at 1,301.78 won.The euro was little changed at $1.0564, while sterling slipped 0.1% to $1.2253.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: DailyFX - 🏆 305. / 63 Read more »
Source: Reuters - 🏆 2. / 97 Read more »
Source: Forbes - 🏆 394. / 53 Read more »
Source: Forbes - 🏆 394. / 53 Read more »
Source: FoxBusiness - 🏆 458. / 53 Read more »
Source: FXStreetNews - 🏆 14. / 72 Read more »