In the News

Dollar steady after Powell opens door to U.S. rate cut

(Reuters) The U.S. dollar was steady on Tuesday after Federal Reserve Chair Jerome Powell alluded to the possibility of an interest rate cut in the face of economic risks, including the global trade war.

“Powell’s comments will be seen as slightly dollar negative but we might not see much of a move today because the greenback already fell yesterday after (St. Louis Federal Reserve President James) Bullard. His comments are not as aggressively dovish as Bullard’s yesterday but he does reiterate the same concerns: trade tensions and low inflation,” said John Doyle, vice president of dealing and trading at Monex, Inc.

The dollar fell on Monday to a five-month low against the Japanese yen after Bullard said an interest rate cut “may be warranted soon,” given the rising economic risk posed by global trade tensions, as well as tame U.S. inflation. The yen was last at 108.26, 0.2% weaker on the day.

“We are likely seeing the beginning of coordinated Fed-speak to prep market participants for at least one rate cut this year,” said Doyle.

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