Dollar falls on Powell’s dovish comments
2022.12.01 00:16
Dollar falls on Powell’s dovish comments
Budrigannews.com – The dollar fell further on Thursday after Federal Reserve Chair Jerome Powell stated that the central bank will likely slow its pace of future despite China’s weak economic data prints dampening sentiment.
The was one of the best performers, climbing nearly 1 percent to 136.76, its highest level against the dollar in over three months. Data showing that the Japanese economy grew at its fastest rate in four years during the third quarter also helped the currency.
This raised hopes that the country’s shock contraction in its will be revised more favorably.In anticipation of a broader lifting of COVID-19 restrictions in the country, the gained 0.2 percent after rallying more than 1 percent in the previous session.
This week in two major Chinese cities, as public outrage over the government’s zero-COVID policy grows.
However, negative economic data dampened confidence in the Chinese economy.A showed that anti-COVID measures were putting more and more pressure on China’s manufacturing sector, which is a gauge of the economy. In November, the sector contracted for a third month in a row.
The country’s economy is probably going to suffer during the fourth quarter as a result of this.
On Thursday, broader Asian currencies saw gains while the dollar continued to fall.With a gain of 0.8 percent, led gains across Southeast Asia, and firmed by 0.3 percent.The jumped 0.4% among Antipodean currencies, while the jumped 0.6%.
After falling by more than 1% in the previous session, the and both fell by 0.3 percent and remained close to their lowest point in three months.
However, on Thursday, the dollar stabilized, and a risk-on rally appeared to be slowing down amid concerns about the U.S. economy and uncertainty regarding monetary policy.
Powell, on the other hand, issued a warning that obstinate U.S. interest rates will reach their peak at levels higher than anticipated. In recent weeks, comments made by Fed members reaffirmed the idea that the direction that inflation takes will determine when rates are raised.
Due to uncertainty regarding inflation and rising rates, the Fed has also emphasized growing pessimism about the U.S. economy.
After a slew of weak economic readings this week, concerns about Asian economies also grew.
On Thursday, data showed that the country’s widened even more in November as a result of worsening demand for its exports and rising imports, putting it behind its peers.
