English
The dollar falls after the US Central Bank Chairman’s comments
The dollar fell on Tuesday amid volatile trading after US Federal Reserve Chairman Jerome Powell adopted a dovish tone in his comments, indicating that the bank is likely to begin cutting interest rates later this year.
Powell stated at a monetary policy conference held in Portugal that the US economy had made significant progress in controlling the inflation rate, which had begun to decline.
Analysts said his comments leaned toward monetary easing. Powell's comments offset data showing US job openings increased in May after a significant decline in the previous two months.
After the jobs report and Powell's comments determined futures contracts, the probability of the bank reducing the interest rate in September increased to about 69%, compared to about 63% yesterday, Monday, according to data from the London Stock Exchange Group.
By the end of early trading, the dollar index, which measures the performance of the US currency against six other currencies, fell by about 0.1% to 105.74 points.
The dollar received support from the continued rise in Treasury bond yields.
In addition, standard 10-year Treasury bond yields rose by about 14 basis points to 4.479%, and analysts attributed the move to expectations of Donald Trump winning the US presidency and the subsequent increase in tariffs and government borrowing.
The yield on 10-year bonds fell 4.3% on Tuesday. The dollar also fell slightly against the Japanese currency to 161.43 yen.
