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© Reuters
By Peter Nurse
Investing.com – The US dollar lost positions at the start of trading on Thursday in Europe, but remains elevated as Federal Reserve Chairman Jerome Powell talks again of further interest rate hikes to cope with inflation.
By 09:10 AM ET (0910 GMT), the , which tracks the currency against a basket of six other major currencies, was down 0.1% at 105.543, staying near its three-month high of 105.880. during the previous day.
The president of the Federal Reserve, Jerome returns to the Capitol this Wednesday for his second day of semiannual appearance, this time before the Financial Services Committee of the House of Representatives.
Powell has reiterated his earlier statements that the US central bank will likely have to raise the US more than expected, and possibly in longer stages, as recent economic data has turned out to be stronger than expected, pointing to inflationary pressures. persistent.
He made the concession that the debate on future rate hikes, including the one scheduled for March, was still ongoing and would depend on the data.
Thus, Friday’s official will be in the spotlight, especially after the success of last month’s report, and Thursday’s US data will serve as a precursor.
Powell’s remarks have pushed US Treasury yields above 5.5% to 16-year highs, while the a-curve has inverted nearly 110 basis points and is sparking growing fears of a US-induced recession. by the Fed.
“We cannot expect a general fall in the dollar until the disinflation story resumes and the sharp reversal of the US yield curve at the short end of its decline is broken,” say analysts at ING (AS:) in a note.
Elsewhere, the pair rose 0.1% to 1.0555 and the pair rose 0.1% to 1.1848, both recovering from their multi-month lows following the dollar’s slide.
The pair is down 0.4% to the 136.87 level, retreating from a nearly three-month high, the is up 0.4% to 0.6612, and the is up 0.3% to 6 .9734, close to the 7/dollar level seen after the weaker-than-expected , showed China’s faltering economic recovery.
it fell 0.1% to 1.3794 a day after it suspended its monetary tightening, keeping its overnight interest rate at 4.50%.
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