Forex – Dollar Index Remains Broadly Supported at 5-Week Peak

Dollar higher vs. other majors on Powell remarks – The U.S. dollar remained supported at five-week highs against other major currencies on Wednesday, as Tuesday’s hawkish remarks by Federal Reserve Chairman Jerome Powell continued to boost demand for the greenback.

The greenback was boosted after Fed Chair Jerome Powell that the U.S. central bank would likely move forward with gradual increases in interest rates.

“The economic outlook remains strong,” he said. “Further gradual increases in the federal funds rate will best promote attainment of both of our objectives.”

Powell was speaking at his first semi-annual monetary policy testimony to the House Financial Services Committee since taking over the helm of Fed earlier this month.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.12% at 90.41 by 05:15 a.m. ET (09:15 GMT), the highest since january 22.

The euro and the pound were lower, with down 0.16% at 1.2212 and with slipping 0.18% to 1.3882.

Preliminary data on Wednesday showed that euro zone consumer prices this month.

Elsewhere, the yen was stronger, with shedding 0.22% to 107.09, while gained 0.34% to trade at 0.9420.

The yen strengthened after the Bank of Japan trimmed bond purchases, reviving speculation that it is moving closer to .

The Australian dollar was higher, with up 0.26% at 0.7810, while fell 0.28% to 0.7214.

Meanwhile, held steady at 1.2767.

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