© Reuters. The dollar hits a peak daily on Powell
Investing.com – The dollar has reached its highest of the day on Tuesday after the federal Reserve chairman, Jerome Powell, has stated to Congress that the central bank was on track to progressively raise interest rates.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.25% to 89.98 at 09:02 AM (14:02 GMT).
In a testimony prepared, Powell said that the Fed remains on track to gradually increase the rates to keep the economy on track in a context marked by the strengthening of growth and inflation.
“The economic outlook remains strong,” he said. “Other incremental increases in the federal funds rate will promote the achievement of our two objectives. “
The remarks were published before the Congressional testimony Powell Tuesday, his first appearance on Capitol hill since his swearing-in as the new head of the Fed at the beginning of the month.
At the same time, data showed that durable goods orders have hit a low in six months in January.
Durable goods orders, or items meant to last at least three years, fell 3.7% last month from December, said the Commerce Department.
The dollar rose slightly against the yen, with USD / JPY up 0.15% to 107.10.
The euro fell to its lowest level daily against the dollar, with the EUR / USD down 0.26% to 1,2286.
The pound has also declined, with the GBP / USD losing 0.43 per cent to trade at 1,3913.