Federal Reserve (Fed) Chairman Powell on Wednesday (29th) reiterated his determination to curb inflation and said that there is no guarantee that the U.S. economy can achieve a soft landing, under the influx of safe-haven funds,US dollar indexrose to a two-week high.
In late New York trade, ICE, which tracks the dollar against six major currencies US dollar index (DXY) rose 0.56% to 105.09, a roughly two-week high.
Jerome Powell, speaking at the European Central Bank’s annual forum on Wednesday, said he sees failure to restore price stability as the biggest risk to the U.S. economy, rather than raising interest rates too much and tipping the economy into recession.
While optimistic about the current state of the economy, Powell also said the Fed cannot guarantee a soft landing for the U.S. economy.
Erik Nelson, currency strategist at Wells Fargo, said: “Bauer sounds pretty hawkish in my opinion, talking about being pre-emptive, or getting ahead of inflation expectations or a surprise uptick. I think that Perhaps in a different way than in the past few months, the market thinks they will respond to higher inflation expectations, and they seem to be reactive rather than reactive.”
In terms of economic data, the U.S. announced that the final quarterly growth rate of gross domestic product (GDP) in the first quarter was revised down to -1.6% from -1.5%, well below the 6.9% rate in the fourth quarter of last year.
EURContinuing to fall, the exchange rate against the US dollar fell 0.77% to US$1.0441, a two-week low. ECB President Christine Lagarde said on Wednesday that a return to the pre-pandemic period of low inflation was unlikely and the central bank would have to adjust to adjust to higher price growth expectations.
It is widely expected that the European Central Bank will follow in the footsteps of its peers and raise interest rates for the first time in July.
Monetary policy differences with European and American central banks sparkedJapanese Yensell off,Japanese YenDown 0.28% against the dollar to 136.54 Japanese Yenagainst 1 dollar.Japanese YenIt briefly broke the 137 level on Wednesday, hitting a new 24-year low.
Nelson said: “Japanese YenThe latest move shows a very strong selling bias, which can be attributed to the fact that the Bank of Japan is the only major central bank not to tighten monetary policy. “
As the dollar strengthens,GBPDown 0.52% against the dollar to $1.2121,AUDAgainst the greenback, it was down 0.39% at $0.6878.
Russia’s ruble rose 2.1 percent to 51.875 per dollar, having traded near 50 in the session, but pared gains after authorities signaled possible currency intervention. The ruble has been the world’s best-performing currency this year as Russia’s central bank imposed capital flow restrictions to fend off sanctions following the outbreak of the Russian-Ukrainian war.
As of Thursday (30th) Taiwan time about 6:00 Price:
- US dollar indexReport 105.1037. +0.5865%
- EURExchange rate against the US dollar (EUR/USD) at 1 EURAgainst $1.0441. -0.7604%
- GBPExchange rate against the US dollar (GBP/USD) at 1 GBPAgainst $1.2121. -0.5089%
- AUDExchange rate against the US dollar (AUD/USD) at 1 AUDAgainst $0.6877. -0.4055%
- dollar againstCanadian Dollars (USD/CAD) exchange rate at 1.2891 US dollar Canadian Dollars。-0.1632%
- dollar againstJapanese Yen (USD/JPY) exchange rate is quoted at 136.52 per US dollar Japanese Yen。+0.2939%