In the News

Dollar drops to three-week low after Fed Powell’s testimony

(Reuters) The dollar fell to a three-week low in choppy trading on Tuesday as Federal Reserve Chairman Jerome Powell repeated that the U.S. central bank would remain patient on monetary policy, suggesting that it was unlikely to raise interest rates anytime soon.

The greenback’s earlier advance was also helped by news of a jump in U.S. consumer confidence, which came as Powell spoke.

“The basic message that Powell is sending is that the Fed needs to be cautious. At this point, the Fed seems to be suggesting that there are doubts on the economy,” said Juan Perez, senior currency trader at Tempus Inc in Washington.

“Powell mentioned the U.S. labor market and it seems like he’s not necessarily convinced that it’s great. He believes there could always be slack and that’s the reason why the Fed will not just continue on this path toward normalization,” he added.

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