# Dollar higher after Powell says Fed inflation fight ‘has a long way to go’ Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-06-21 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Dollar Higher: Powell says Fed's Inflation Fight has Meta Description: Stay updated on how the US dollar is performing against other currencies after Federal Reserve Chair Jerome Powell's remarks emphasising a long journey URL: https://financedigest.com/dollar-higher-after-powell-says-fed-inflation-fight-has-a-long-way-to-gohtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-06-21t005545z2lynxmpej5k00trtroptp4usa-debt-dollar-1736813846534-compressed.jpg) # Dollar higher after Powell says Fed inflation fight ‘has a long way to go’ By Saqib Iqbal Ahmed NEW YORK (Reuters) -The U.S. [dollar edged higher](https://www.financedigest.com/dollar-on-guard-as-us-inflation-test-looms.html "Dollar on guard as US inflation test looms") against a basket of currencies on Wednesday after Federal Reserve Chair Jerome Powell said the central bank’s fight to lower inflation “has a long way to go. The dollar index, which measures the currency against six rivals, was 0.15% higher on the day at 102.66, after the release of Powell’s testimony prepared for delivery to the [House Financial](https://www.financedigest.com/what-green-criteria-sustainable-finance-houses-look-for-when-conducting-due-diligence-and-how-businesses-seeking-to-attract-investment-can-get-their-house-in-order.html "What green criteria sustainable finance houses look for when conducting due diligence, and how businesses seeking to attract investment can get their house in order") Services Committee at 10:00 a.m. ET (1400 GMT). Inflation pressures continue to run high, and the process of getting inflation back down to 2% has a long way to go,” Powell said, noting that even as the [Fed](https://www.financedigest.com/global-shares-rise-dollar-rebounds-as-fed-seen-on-target-for-rate-hike.html "Global shares rise, dollar rebounds as Fed seen on target for rate hike") held off raising interest rates at the Federal Open Market Committee meeting last week “nearly all” participants expected further rate increases would be appropriate by the end of the year. The hearing, the first of two Capitol Hill appearances this week as part of his twice-yearly reports to federal lawmakers, was set to begin at 10 a.m. (1400 GMT). Powell will appear before the Senate Banking Committee on Thursday. The [prepared remarks seem like mostly a re-hash of last](https://www.financedigest.com/last-hope-eager-germans-are-prepared-to-pay-for-weight-loss-drug.html "“Last hope”: Eager Germans are prepared to pay for weight-loss drug") week’s presser… … I don’t think markets have reacted too significantly thus far,” TraderX market strategist Michael Brown said. “Consumer Price Index and Non-Farm Payrolls in July are going to be huge events, though it does feel that unless there’s some kind of disastrous jobs print they’re going to hike in July come what may,” Brown said. Investors broadly expect rate increases to resume at the Fed’s July meeting, though [financial market](https://www.financedigest.com/marketing-in-a-new-financial-frontier.html "Marketing in a new financial frontier ") indicators reflect doubts that the Fed will deliver more increases beyond that meeting. YEN UNDER PRESSURE, STERLING SEESAWS The euro was about flat against the dollar at $1.0915. Against the yen, the dollar was up 0.6% at 142.33 yen, with the [Japanese currency under pressure after Bank of Japan](https://www.financedigest.com/analysis-as-japan-aligns-with-u-s-chip-curbs-on-china-some-in-tokyo-feel-uneasy.html "Analysis-As Japan aligns with U.S. chip curbs on China, some in Tokyo feel uneasy") Governor Kazuo Ueda on Wednesday reiterated the central bank’s dovish stance to maintain its ultra-loose monetary policy. The British pound seesawed on Wednesday, initially jumping after data showed UK inflation accelerated more than expected in May, then reversing [gains as concerns flared over the Bank](https://www.financedigest.com/at-europes-big-banks-women-make-some-gains-despite-rose-exit.html "At Europe’s big banks, women make some gains despite Rose exit") of England’s ability to protect the economy from stagnating. The annual pace of British consumer price gains was steady at 8.7% in May, against hopes it had cooled since April, with the UK’s inflation [rate remaining more persistent compared with other major economies](https://www.financedigest.com/oil-prices-wobble-on-worries-over-china-economy-us-rate-path.html "Oil prices wobble on worries over China economy, US rate path"). Adam Cole, chief currency strategist at RBC Capital Markets, said sterling’s weakness may be down to fears that “inflation is high enough and consistent enough for it to become negative for the currency”. The pound was last down 0.43% at $1.2708, a near 1-week low. The Australian dollar was down 0.55% at $0.675, on pace for a 4th straight day of losses, weighed down by the release on Tuesday of the minutes of the Reserve Bank of Australia’s June policy meeting, where guidance on yet further increases was absent, a sign that markets took as dovish. The Aussie, which is very sensitive to Chinese economic data, has also come under pressure due to lacklustre stimulus measures from Beijing. Bitcoin extended overnight gains to breach $29,000 for the first time since late May, helped by the launch of a new crypto exchange backed by Fidelity, Citadel Securities and Charles Schwab. It was last up 2.87% at $29,129. (Reporting by Saqib Iqbal Ahmed, additional reporting by Tom Westbrook and Farouq Suleiman; Editing by Sam Holmes, Kim Coghill, Sharon Singleton and Alex Richardson) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---