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Forex - Dollar Index on Back Foot With All Eyes on Powell

Published 02/27/2018, 05:16 AM
© Reuters.  Dollar remains under pressure before Powell Testimony
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Investing.com - The U.S. dollar remained lower against other major currencies on Tuesday, as sentiment on the greenback was fragile ahead of Federal Reserve Chairman Jerome Powell's first congressional testimony scheduled later in the week.

Investors were eyeing Powell’s congressional testimony scheduled later Tuesday. It will be his first appearance on Capitol Hill since he was sworn in as the new Fed chief earlier this month.

Any indications the Fed is leaning towards raising interest rates at a faster than expected pace this year could determine whether the dollar’s recovery from recent three year lows still has further to go.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.33% at 89.51 by 05:15 a.m. ET (09:15 GMT), the lowest since February 20.

The euro was higher, with EUR/USD adding 0.13% to 1.2332, while GBP/USD slipped 0.11% to 1.3954.

Elsewhere, the yen was weaker, with USD/JPY up 0.10% to 107.05, while USD/CHF edged down 0.15% to trade at 0.9365.

The Australian and New Zealand dollars were lower, with AUD/USD down 0.18% at 0.7840 and with NZD/USD shedding 0.31% to 0.7281.

Meanwhile, USD/CAD held steady at 1.2690.

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