The US dollar falls on Fed's devilish remarks



The US dollar fell on Friday for the sixth time in seven days, when Fed chairman Jerome Powell said that gradual tariff increases are likely to be appropriate if growth remains strong and that "there does not appear to be an increased risk of overheating".

The ten-year interest rate on the treasury fell to 2.82 percent.

"It seems he understands how light he should be to raise interest rates against inflation," said Kim Forrest, senior portfolio manager at Fort Pitt Capital Group LLC in Pittsburgh.

"It does not sound like he's going to do an a [former Fed chairman Alan] Greenspan, turn on. But he does understand that inflation is probably his main goal now, namely that this measure remains the primary problem in the economy. But you also do not want to kill the recovery and kill a strong growth. He will let the data decide, & # 39; said Forrest.

Investors hoping for a global trade resolution remained disappointed after the US negotiations with China ended with an increased chance that the titers will escalate from now on, casting a shadow on the outlook for global growth.

However, the focus has shifted to the Fed's policy, where bond traders are more confident of two rate hikes by the end of this year.

This view could, however, be tested against the turmoil in emerging markets, persistent trade tensions and political drama in Washington that are still stuck in the background.

The US dollar index, which measures the greenback against six rival currencies, fell Friday by 0.5 percent to 95.17, down from 1 percent for the week of 96.10 last week.

In Taipei, the New Taiwan dollar rose against the greenback and gained NT $ .070 to close at NT $ 30,783, little compared to $ 30,802 last week.

The Mexican peso cashed in on Friday against the greenback when there were cracks in negotiations on the free trade agreement in the North Atlantic.

The euro gained 0.7 percent against the US dollar to US $ 1.1625, an increase of 1.6 percent for the week.

The Japanese yen rose 0.1 percent to ¥ 111.19 per US dollar, but fell by 0.7 percent this week.

Against a generally weaker US dollar, the British pound found some buyers and rose to a level of US $ 1.2861, an increase of 0.3 percent on the day and 0.9 percent for the week.

Additional reporting by CNA and Reuters, with staff writer


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