Dollar stabilizes ahead of Powell’s speech and inflation data supports the pound

The dollar rose on Wednesday before Federal Reserve Chairman Jerome Powell speaks to Congress as his comments are expected to reflect tightening monetary policy, while the British pound rose slightly after stronger-than-expected British inflation data.

Britain’s consumer price index held steady at 8.7 percent in May, despite hopes that it will ease from its level in April. Sterling rose briefly 0.3 percent against the dollar to $1.2803, before settling at $1.2765.

It also rose slightly against the euro and the yen as traders bet that the Bank of England will raise rates. Markets are already pricing in the possibility of another 150 basis point hike to a peak of 6% in 12 months.

The euro held steady at $1.0914 in Asian transactions, while the yen fell slightly to 141.80 against the dollar after the minutes of the Bank of Japan’s monetary policy meeting showed that bank officials indicated adherence to monetary easing, while the focus of dealers shifted to the US central bank.

Powell begins his congressional testimony at 1400 GMT.

The Chinese yuan fell to its lowest level in seven months against the dollar at 7.1987 in domestic transactions, while the yuan in foreign transactions exceeded 7.2 against the dollar.

The Australian dollar fell 0.9 percent in the evening, and recorded in the latest trading at $ 0.6786.

The New Zealand dollar also fell, before settling at around $0.6178.

The dollar index rose slightly to 102.60.

The Bitcoin digital currency continued its gains, which it recorded in the evening, to exceed the $ 29,000 barrier for the first time since the end of May, after the launch of a new digital currency trading platform supported by Fidelity, Citadel Securities, and Charles Schwab.