© Reuters. The dollar is lower, in view of the testimony of Powell
Investing.com – The dollar plunged on Tuesday against a basket of currencies as investors await the first testimony of the president of the federal Reserve, and Jerome Powell, later in the day.
The dollar index, which measures the strength of the dollar against a basket of six major currencies, fell slightly to 0.13% 89,66 at 03:09 AM (08:09 GMT).
Investors are waiting for his first appearance on Capitol hill since his swearing-in as the new head of the Fed at the beginning of the month.
All indications are that the Fed will look to increase interest rates at a faster pace than expected this year could determine whether the recovery of the dollar from recent lows of three years will continue.
The dollar index climbed 0.9% last week, extending its recovery after hitting a low of 88,15 February 16.
The dollar has been boosted by the fact that the contraction of the currency since the beginning of the year has been exaggerated by expectations of increases faster u.s. interest rates.
Investors also turn to a series of u.s. economic data this week, including reports on consumer confidence, the revised growth in the fourth quarter, the manufacturing sector and the income and expenses personal.
The dollar rose slightly against the yen, with USD / JPY edged up 0.11% to 107,04.
The euro rose, with the EUR / USD rising 0.18% to 1,2339, but gains were checked as investors remain cautious in view of the general elections Italian scheduled for 4 march.
The pound rose against the dollar, with a rise in the GBP / USD, 0.12% to 1,3985.
The australian dollar has changed little, with the AUD / USD to 0,7852, while the new zealand dollar depreciated, with the NZD / USD down 0.15% to 0,7291.