The U.S. dollar turned in a mixed performance against major currencies on Wednesday, although the dollar index spent much of the session in positive territory, aided by positive comments about the state of the economy by the Federal Reserve Chair Jerome Powell.
Testifying before Congress, Powell reiterated that the central bank is likely to leave interest rates on hold in the near future.
Powell told members of the Joint Economic Committee that the Fed would leave rates at their current level unless there is a material change in the economic outlook.
“We see the current stance of monetary policy as likely to remain appropriate as long as incoming information about the economy remains broadly consistent with our outlook of moderate economic growth, a strong labor market, and inflation near our symmetric 2 percent objective,” Powell said.
“Of course, if developments emerge that cause a material reassessment of our outlook, we would respond accordingly,” he added. “Policy is not on a preset course.”
The Fed chief noted that noteworthy risks to the outlook remain, citing sluggish growth abroad and uncertainty about trade amid the ongoing U.S.-China trade war.
The dollar index was last seen at 98.37, up from previous close of 98.31. The dollar moved in a very narrow band between 98.29 and 98.45.
Against the Euro, the dollar was down slightly at 1.1003, recovering from a low of 1.1022.
The Pound Sterling was up marginally against the dollar, at $1.2847, after moving between $1.2822 and $1.2863.
Against the Japanese Yen, the dollar was down at 108.84 yen, compared to 108.84 yen on Tuesday.
The dollar was up against the aussie with the AUD-USD pair at 0.6837.
Against the loonie, the dollar was gaining at 1.3254, and against Swiss franc it was down notably at 0.9903.
According to the data released by the Labor Department, U.S. consumer prices rose by slightly more than anticipated in the month of October.
The Labor Department said its consumer price index climbed by 0.4% in October after coming in unchanged in September. Economists had expected consumer prices to rise by 0.3%.
Excluding food and energy prices, core consumer prices edged up by 0.2% in October after a 0.1% uptick in September. The uptick in core prices matched economist estimates.
The material has been provided by InstaForex Company – www.instaforex.com