© Reuters. The dollar slips in view of the testimony of Powell
Investing.com – The dollar slipped lower against a basket of currencies on Tuesday before the testimony of the chairman of the us federal Reserve system, Jerome Powell, while the markets will closely monitor any indications on the future direction of interest rates.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.12% to 94,16 at 03:37 AM (07:37 AM GMT).
It must appear before the Committee on financial services of the House of representatives on Wednesday.
Powell is expected to reiterate that the Fed is on track to continue its pace of rate increase, but investors will be watching for any indication that the us trade policy have darkened the prospects of tightening.
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 was stable against the yen, with USD / JPY at 112,33, is now below the highest of the six months of 112,79 last Friday.
The financial markets in Japan have reopened Tuesday after a holiday Monday.
The euro rose against the weaker dollar, with EUR / USD rising 0.18% to 1,1729.
The british pound was a little stronger, with GBP / USD edging up 0.1% at 1.3247.
During this time, the australian dollar was slightly higher, with AUD / USD up 0.13% at 0.7428.
The new zealand dollar rose 0.81% to reach a high of a week (0,6833).