© Reuters. The dollar to a peak daily according to the testimony of Powell
Investing.com – The dollar has reached its peak daily against a basket of currencies Tuesday after the federal Reserve chairman, Jerome Powell, has said that a strong growth and stable inflation should keep the central bank on track for rate increases regular.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, rose from 0.31% to 94,56 at 10h54 (14h54 GMT), in departing below the previous 94,12.
Fed officials believe, for the moment, that the best way forward is to gradually increase interest rates to keep inflation close to its target in a u.s. job market is strong, said Mr. Powell, during testimony before the banking Committee of the Senate.
He also warned that it is “difficult to predict” how the trade tensions will have an impact on the economic outlook, adding that the risk of a weaker economy or higher are “roughly balanced”.
On Monday, the international monetary Fund has warned that the escalation of trade tensions threatened to derail the economic recovery, adding that the financial markets seemed satisfied with the growing risk.
The dollar reached a new six-month peak against the yen, with USD / JPY advancing 0.52% to 112,86, the highest level since January 9.
The euro slipped against the dollar firmer, with EUR / USD losing 0.2% at 1.1685.
The pound sterling was broadly lower, with the GBP / USD falling 0.55% seen at 1.3164, while the new political uncertainty has been felt in view of another vote of confidence in the british parliament later in the day, with the Prime minister Theresa May in a difficult position.
The british pound declined against the euro, with EUR / GBP up 0.33% to 0,8877.