The Dollar Settled Near Its Lowest Level in Two Months

The price of the dollar settled near its lowest level in two months against the major currencies on Wednesday, ahead of the release of data that is expected to show a new rise in the US inflation rate, which supports the prospects of rising interest rates early.

Federal Reserve Chairman Jerome Powell gave no clear indication in his testimony on Tuesday before the Senate Banking Committee that the House was in a rush to speed up the rate hike, which pushed the dollar lower after it rose supported by interest rate hike expectations in the past weeks.

The dollar index was last trading at 95.611, stable on Wednesday. It had fallen to 95,533 in Asian trade, its lowest level since November 18.

The consumer price index data, expected to be released at 1330 GMT, is expected to point to a sharp rise of 7 percent in the inflation rate, which may be the highest level since 1982.

The dollar rose only 0.1 percent against the yen to 115.44 yen to the dollar. The euro settled at 1.1355 dollars.

The Australian dollar retreated from its highest level in a week to $0.72230.

The pound rose to $1.3645 for the first time since November 4, buoyed by the view that the worst period of mutated omicron from the coronavirus may be fading in Britain.