Greenback rises ahead of Fed chairman’s speech

NEW YORK – The US dollar rose modestly in late trading yesterday as market participants awaited a key speech by Federal Reserve chairman Jerome Powell.

The dollar index, which measures the greenback against six major peers, increased 0.05% to 108.6750.

In late New York trading, the euro was up to US$0.9965 (RM4.47) from U$0.9963 in the previous session, and the British pound was down to US$1.1788 from  US$1.1818 in the previous session. The Australian dollar decreased to US$0.6906 from US$0.6922.

 The US dollar bought ¥137.09 (RM4.50), higher than ¥136.85 in the previous session. It has also gone up to CHF0.9670 (RM4.50) from CHF0.9647, and up to CAD$1.2976 (RM4.48) from CAD$1.2964.

Powell is set to make a keynote speech tomorrow at the central bank’s Jackson Hole symposium.

“The markets will be listening to every word Powell has to say to glean any insight on how much the Fed will raise rates on September 21,” Zacks Investment Research executive vice president Kevin Matras said yesterday in a note.

“In addition, they’ll be looking for any hints on what comes after that,” he said. – Bernama, August 25, 2022