The U.S. dollar was declining against major world currencies in trading on Thursday.
The DXY index, which shows the U.S. dollar value against six major world currencies, fell 0.08% to 105.57 points. A day earlier it had risen to 105.88 points, the highest level since December 1, on hawkish statements from Federal Reserve (Fed) chief Jerome Powell, MarketWatch notes.
He said that Fed management has not yet decided how much it will raise the benchmark interest rate at the March meeting. That will depend on statistical data on inflation and employment, which the Fed has yet to assess. Powell said the Central Bank is ready to accelerate the pace of monetary tightening if U.S. economic activity does not begin to slow. That said, the final rate level is likely to be higher than previously thought, he said.
Prime rate futures prices point to the likelihood of a 50 basis point hike at the end of the March meeting, according to Trading Economics.
The euro is trading at $1.0553 in the morning versus $1.0544 at the end of last session.
The value of the single European currency is now around 144.40 yen compared to 144.82 yen on Wednesday. The dollar exchange rate is 136.81 yen against 137.35 yen at the end of the previous trading day.
The WSJ Dollar indicator, which tracks the dollar’s movement against 16 currencies, declined 0.13%.
The pound is trading at $1.1855 compared to $1.1844 on the previous trading day. The euro is at 0.8901 against 0.8902 a day earlier.
