Dollar Strengthens Slightly as Investors Absorb Powell's Stateme
The US dollar rose slightly against major currencies in New York trading on Monday (July 15) after investors digested comments from Federal Reserve Chairman Jerome Powell that signaled a rate cut .
Meanwhile, the dollar index, which measures the greenback against a basket of six major currencies, rose 0.09% to 104.189.
The US dollar rose to 0.8956 Swiss francs from 0.8947 francs late Friday and rose to 1.3671 Canadian dollars from 1.3630 Canadian dollars. However, the US dollar fell to 157.86 yen from 157.92 yen.
The euro fell to $1.0901 from $1.0906, and the pound fell to $1.2972 from $1.2989.
Federal Reserve Chairman Jerome Powell said in a speech to the Economic Association in Washington, D.C., on Monday (July 15) that the Fed will not wait until inflation is at its 2% target before cutting interest rates. He also said he does not think the US economy is facing a sharp downturn after its rapid expansion.
“The Fed will not wait until inflation is at its 2% target before cutting rates,” Powell said. “The reason for that is that waiting until inflation is at 2% is too long, because the monetary tightening we are currently doing is still having the potential to bring inflation below 2%.”
In economic data reported last night, the New York Federal Reserve reported that its Empire State Manufacturing Index fell to -6.6 in July, below analysts' expectations of -5.5, down from -6.0 in June.
The index remains below zero, indicating a contraction in New York's manufacturing sector, hurt by a contraction in employment, even as businesses grow more confident about the future outlook.
Meanwhile, the dollar index, which measures the greenback against a basket of six major currencies, rose 0.09% to 104.189.
The US dollar rose to 0.8956 Swiss francs from 0.8947 francs late Friday and rose to 1.3671 Canadian dollars from 1.3630 Canadian dollars. However, the US dollar fell to 157.86 yen from 157.92 yen.
The euro fell to $1.0901 from $1.0906, and the pound fell to $1.2972 from $1.2989.
Federal Reserve Chairman Jerome Powell said in a speech to the Economic Association in Washington, D.C., on Monday (July 15) that the Fed will not wait until inflation is at its 2% target before cutting interest rates. He also said he does not think the US economy is facing a sharp downturn after its rapid expansion.
“The Fed will not wait until inflation is at its 2% target before cutting rates,” Powell said. “The reason for that is that waiting until inflation is at 2% is too long, because the monetary tightening we are currently doing is still having the potential to bring inflation below 2%.”
In economic data reported last night, the New York Federal Reserve reported that its Empire State Manufacturing Index fell to -6.6 in July, below analysts' expectations of -5.5, down from -6.0 in June.
The index remains below zero, indicating a contraction in New York's manufacturing sector, hurt by a contraction in employment, even as businesses grow more confident about the future outlook.
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