TOKYO (Reuters) – The dollar has rebounded from a three-year low after Federal Reserve Chairman Jerome Powell said Thursday that interest rates would never rise anytime soon.
Details of a $ 1.9 trillion stimulus by President Joe Biden later that day failed to further support the greenback, with the main points of the plan already reported by the media.
Bitcoin continued to recover after falling nearly $ 12,000 from the $ 42,000 record reached last week, summarizing $ 40,000 overnight.
The dollar index has risen after reaching its lowest level since March 2018 last week, as more stimulus on U.S. government bonds was expected, adding a 10-year benchmark yield Finance above 1% for first time since March.
While many analysts predict that the greenback will begin the recession it saw slip by nearly 7% last year against major peers as the economy slows. global recovery from the pandemic, there is growing concern that the increase in output will alleviate that weakness.
The dollar index remained unchanged at 90.26 after moving slightly lower overnight. It went back as high as 90.73 at the beginning of this week from as low as 89.206 on January 6th.
Powell said in a live interview with a professor at Princeton University that the economy is still a long way from where the Fed wants to be, and that it sees no reason to change its very appropriate position “until the Fed work done well and truthfully. ”
The central bank’s asset purchase program has put pressure on the dollar as it increases the supply of the currency, reducing its value.
“In the shorter term, Powell has just topped the U.S. dollar,”
Westpac money analyst Sean Callow said.
“The baseline issue remains for a major acceleration in the global economy, which has historically been positive for most currencies against the U.S. dollar, but I think the possibility of at least a debate in which the US dollar will be good. how weak people expected. ”
The dollar remained unchanged at 103.76 yen after slipping 0.1% overnight.
The euro fell 0.1% to $ 1.21465, on the path for a three-day decline.
The most risky Aussie dollar slipped 0.1% to 77.650 U.S. cents, pushing a 0.6% rise from the previous session.
Reciting with Kevin Buckland. Edited by Gerry Doyle