Dollar gains in early trading

1 Oct 2024 , 09:51 AM

The US dollar rose against key peers on Tuesday after Federal Reserve Chair Jerome Powell pushed back overnight against speculations for additional massive interest rate reduction.

The euro traded near Monday’s one-week low following a dip in German inflation to its lowest level since early 2021, fuelling speculation of another rate cut this month.

The yen has remained near to the middle of its range against the dollar over the last month, following a turbulent two days when traders assessed Japan’s new prime minister and his cabinet.

Australia’s currency caught its breath after rising to its highest level since February of last year on Monday, spurred by stimulus in the country’s main trading partner, China.

Powell’s address came ahead of a busy week of statistics in the United States, including the Institute for Supply Management’s manufacturing index later on Tuesday and a non-manufacturing survey on Thursday, followed by potentially critical monthly employment figures on Friday.

The dollar index increased 0.07% to 100.85 as of 0055 GMT, after rising 0.3% on Monday.

It increased by 0.23% to 143.95 yen after fluctuating between 146.495 yen on Friday and 141.65 yen on Monday.

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