The U.S. dollar edged higher on Wednesday, recovering slightly from recent lows, after Federal Reserve Chair Jerome Powell struck a cautious tone on additional monetary easing. Traders, however, still expect two rate cuts later this year.
As of 01:50 GMT, the dollar index was up 0.1% at 97.335, after hitting its lowest since last Thursday. The dollar traded at 147.77 against the yen, while the euro slipped 0.1% to $1.1800.
Powell reiterated that policymakers face the “challenging task” of balancing inflation risks with a weakening labor market, underscoring the need for prudence.
In Asia-Pacific trading, the Australian dollar strengthened 0.2% to $0.6613 after August CPI rose 3% year-on-year, beating forecasts, though core inflation eased to 2.6%. Traders cut expectations of an RBA rate cut this year to about 33%.
In New Zealand, Finance Minister Nicola Willis appointed Anna Breman as the next Reserve Bank Governor, marking the first woman to hold the role. Her appointment takes effect on December 1.
