The dollar is at a two-week low for this reason

LONDON (Reuters) – Stable dollar It is near a two-week low on Monday, held back by a message from the Federal Reserve Chairman that there is no rush to withdraw massive stimulus.
The US currency’s allure took a hit since Friday, when Federal Reserve Chairman Jerome Powell said a gradual reduction of stimulus may begin this year, but added that the central bank would remain cautious.
Investors responded by sending the dollar index, which measures the value of the US currency against major rival currencies, down to a two-week low of 92.595 before settling around 92.66, still slightly lower on the day.
And the euro was trading at 1.1804 dollars, to witness stability during the session, but it is close to the highest level in three weeks, which it touched in Asian trading at 1.1810 dollars.
The Japanese yen rose to its highest level since last Wednesday at 109.70 per dollar.
And calm is prevailing in Europe as a whole, due to a holiday in Britain.
“We avoided a monetary tightening surprise in Jackson Hole… In the very short term, there may be more downward pressure on the dollar, but what really matters is the economic data going forward,” said Vasilius Kionakis, global head of foreign exchange strategy at Lombard Odier Group.


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