The US Dollar lost momentum versus its major rivals during Asian trade today, after the Chairman of the Federal Reserve Bank reiterated that the central bank's policy would continue to be of a wait-and-see nature. To FX traders, that suggested that the US central bank is taking a breather from the string of rate hikes as they ponder the impact of the global slowdown on the US economy. Jerome Powell said yesterday that given that personal inflation remains stable, there is no longer any urgency to raise rates.
As reported at 10:55 am (JST) in Tokyo, the USD/JPY was trading at 108.2810 Yen, down 0.1125%; the pair has ranged from 108.252 Yen to 108.474 in today's session. The EUR/USD is trading at $1.1523, up 0.22%, while the GBP/USD was trading at $1.2758, a gain of 0.06%.
Gains for Asian Currencies Likely Capped
Asian currencies were also moving higher against the greenback. Currency strategists say that gains for the Aussie and Kiwi Dollars are likely to be limited unless and until there is some more definitive outcome from the current trade talks between the US and China. Both countries had agreed to a 90-day truce, and half way through, analysts say there is still no concrete resolution to the problems. Nonetheless, the AUD/USD and NZD/USD were trading higher, at $0.7196 and $0.6795, respectively, a gain of 0.18% and 0.20%.