Dollar hits a 3-week low against yen

The dollar fell to a three-week low against the yen on Thursday after US Federal Reserve Chairman Jerome Powell calmed investor concerns about continued monetary tightening.

The dollar fell to 135.105 yen to the dollar, its lowest since July 6, after the US central bank raised the key interest rate by 0.75 percentage points, as expected, while noting that despite the continued strength of the labor market, the rest of the economy’s indicators are slowing.

The dollar was last traded down 0.8 percent to 135,525 yen.

With the release of GDP data, it will be known later on Thursday whether the US economy meets the official definition of a recession, which is to record a contraction for two consecutive quarters of the year, so the market’s attention is focused on these data.

The dollar index, which measures its value against six major currencies, fell by a small percentage of 0.05 percent to 106.31, after declining 0.59 percent on Wednesday night.

The price of the euro was little changed at 1.02045 dollars after a jump of 0.82 percent on Wednesday night.

The price of the pound sterling rose 0.05 percent to 1.21640 dollars.