USD maintains its gains ahead of FED Chairman’s statements

The dollar maintained its gains against rival currencies on Thursday ahead of comments by Federal Reserve Chairman Jerome Powell as expectations grew that the bank would keep interest rates high for longer.

The US currency pushed the yen to hover around its lowest levels in two weeks, which it recorded on Wednesday.

The Australian dollar fell after the release of local jobs data, which suddenly declined, and the New Zealand dollar recorded its lowest level in almost a year.

There was little change in the dollar index, which measures the performance of the US currency against a basket of currencies, mostly during Asian trading hours, hovering around the level it reached a day ago at 106.63 points.

The euro stabilized at $1.0534 after coming under pressure from the US currency overnight, while the British pound approached its lowest level in two weeks at $1.21235.

The dollar received support from the rise in US Treasury bond yields, which continued to rise in the morning hours in Asia as markets bet that the Federal Reserve Chairman will adopt a hawkish tone during his speech later on Thursday.

Policymakers at the US Central Bank hinted at a temporary pause in raising interest rates for another two months in light of mixed indicators, including strong economic data and signs of progress in combating inflation, which is still very high.

The next monetary policy meeting is scheduled to be held on October 31 and November 1.

The Japanese yen rose slightly to 149.8 against the dollar after falling to 149.94 per dollar on Wednesday, its lowest level in two weeks.

The Australian dollar received a strong blow after the release of local jobs data, as it fell to 0.6296 against the US currency. In the latest transactions, it recorded 0.63015 against the dollar.

The New Zealand dollar also fell 0.5 percent to 0.5825 per dollar, recording the lowest level in 11 months.