(Recasts, adds new comment, Powell's remarks, updates prices)
The dollar fell from one-month highs on Tuesday after U.S. Federal Reserve Chair Jerome Powell doubled down on statements last week that disinflation has started, as he expects significant declines in inflation this year.
The greenback dropped across the board, led by losses versus the yen, Swiss franc, as well as the Australian and New Zealand dollar.
The Fed chief did say that the return to the U.S. central bank's inflation goal would be a
bumpy process , which would need further rate increases.
"Powell reiterated that he sees declines in inflation coming and that means he may be able to be less hawkish in terms of tightening policy," said Shawn Cruz, head trading strategist at TD Ameritrade in Chicago.
The dollar index =USD , which measures the performance of the greenback against a basket of six other currencies, fell to session lows after Powell's remarks. It was last down 0.2% at 103.34.
U.S. interest-rate futures
0#FF: show that markets are expecting the Fed funds rate to peak just above 5.1% by June, compared with expectations of a peak below 5% prior to Friday's jobs report. FEDWATCHFriday's U.S. jobs report wrongfooted traders who were banking on an imminent pause in the Fed's rate-hike cycle, and gave the dollar a leg up.
The euro EUR=EBS was little changed at $1.0725 after falling to a five-week low of $1.0670. The dollar dropped 1.2% versus then yen to 131 yen JPY=EBS . Sterling GBP=D3 was up slightly against the dollar $1.2031 after tumbling to a one-month low of $1.1974 in the previous session.
======================================================== Currency bid prices at 1:28PM (1828 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index =USD 103.4200 103.6000 -0.15% -0.068% +103.9600 +102.9900 Euro/Dollar EUR=EBS $1.0720 $1.0726 -0.06% +0.05% +$1.0767 +$1.0670 Dollar/Yen JPY=EBS 131.0700 132.6300 -1.17% -0.03% +132.7000 +130.4700 Euro/Yen EURJPY= 140.50 142.24 -1.22% +0.15% +142.3300 +140.2900 Dollar/Swiss CHF=EBS 0.9228 0.9285 -0.66% -0.25% +0.9289 +0.9194 Sterling/Dollar GBP=D3 $1.2022 $1.2022 +0.00% -0.59% +$1.2094 +$1.1962 Dollar/Canadian CAD=D3 1.3423 1.3446 -0.17% -0.93% +1.3469 +1.3382 Aussie/Dollar AUD=D3 $0.6940 $0.6883 +0.84% +1.81% +$0.6988 +$0.6882 Euro/Swiss EURCHF= 0.9891 0.9956 -0.65% -0.03% +0.9958 +0.9873 Euro/Sterling EURGBP= 0.8914 0.8921 -0.08% +0.79% +0.8940 +0.8898 NZ NZD=D3 $0.6316 $0.6305 +0.21% -0.50% +$0.6358 +$0.6274 Dollar/DollarDollar/Norway NOK=D3 10.3500 10.3400 -0.10% +5.26% +10.4305 +10.2950 Euro/Norway EURNOK= 11.1048 11.0847 +0.18% +5.77% +11.1526 +11.0571 Dollar/Sweden SEK= 10.5922 10.6244 -0.31% +1.77% +10.6726 +10.5347 Euro/Sweden EURSEK= 11.3548 11.3901 -0.31% +1.84% +11.4052 +11.3377 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates https://tmsnrt.rs/2RBWI5E^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
