- Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds details, updates prices)
The dollar gained on Wednesday but stayed within a relatively tight range a day ahead of a highly anticipated speech by Federal Reserve Chairman Jerome Powell.
Powell is scheduled to address the U.S. central bank’s policy framework review, and investors are focused on whether he will hint at shifting the Fed’s inflation target to an average.
"Targeting average inflation over time rather than setting a fixed 2% goal would likely mean lower rates for longer," said Raffi Boyadjian, senior investment analyst at online broker XM. "If the Fed confirms such a move, the greenback would stand little chance of a meaningful rebound anytime soon."
The Fed is thought to be still finalizing details of its review, however, with an announcement expected at its September meeting.
That risks leaving investors disappointed on Thursday if Powell does not announce the change.
“Markets are anticipating a dovish lean from Powell," Jonathan Coughtrey, managing director at Action Economics, said in a report. "Any sense of disappointment could catalyze a rebound phase in the dollar, which has been trending lower since March.”
The dollar index, which tracks the greenback's value against a basket of currencies =USD was up 0.15% at 93.14.
The index hit a session high of 93.37 after data showed that U.S. durable goods orders increased more than expected in July, but fell back again.
The euro EUR= dipped 0.26% against the greenback to $1.1802.
The yuan CNH= rose toward a seven-month high at $6.6879 after U.S. and Chinese trade officials reaffirmed their commitment to a Phase 1 trade deal, which eased concerns about a diplomatic standoff between the world's two-largest economies.
======================================================== Currency bid prices at 9:35AM (1335 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1802 $1.1833 -0.26% +5.28% +1.1840 +1.1773 Dollar/Yen JPY= 106.2600 106.3600 -0.09% -2.39% +106.5500 +106.1700 Euro/Yen EURJPY= 125.43 125.88 -0.36% +2.85% +126.1400 +125.2800 Dollar/Swiss CHF= 0.9095 0.9075 +0.22% -6.02% +0.9120 +0.9075 Sterling/Dollar GBP= 1.3155 1.3150 +0.04% -0.78% +1.3165 +1.3118 Dollar/Canadian CAD= 1.3173 1.3168 +0.04% +1.46% +1.3205 +1.3159 Australian/Doll AUD= 0.7213 0.7194 +0.26% +2.73% +0.7214 +0.7188 arEuro/Swiss EURCHF= 1.0735 1.0740 -0.05% -1.08% +1.0759 +1.0734 Euro/Sterling EURGBP= 0.8970 0.8997 -0.30% +6.10% +0.9006 +0.8966 NZ NZD= 0.6567 0.6546 +0.32% -2.51% +0.6573 +0.6545 Dollar/DollarDollar/Norway NOK= 8.9284 8.9646 -0.40% +1.71% +8.9847 +8.9310 Euro/Norway EURNOK= 10.5390 10.5974 -0.55% +7.12% +10.6200 +10.5379 Dollar/Sweden SEK= 8.7398 8.7532 -0.40% -6.50% +8.7891 +8.7425 Euro/Sweden EURSEK= 10.3160 10.3573 -0.40% -1.46% +10.3736 +10.3170 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC-U.S. dollar sheds 10% since late March https://tmsnrt.rs/3lfXwfQ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
