The US dollar is rising after Powell’s comments

The US dollar rose against a basket of major currencies on Monday, following comments from Federal Reserve Chairman Jerome Powell that opened the door for the US central bank to pursue a more tightened path of monetary policy.

The greenback fluctuated between small gains and losses earlier on Monday and weakened slightly after Atlanta Federal Reserve Bank President Raphael Bostic said he expects six rate hikes this year and two in 2023, a less hawkish stance than most of his colleagues because he has concerns about the implications The war between Russia and Ukraine on the American economy.

But the dollar rose after Powell said that the Federal Reserve must act “urgently” to control high inflation and that it would use larger-than-usual increases in interest rates to do so if necessary.

The Fed raised its key interest rate by 25 basis points last week as it sought to combat sharp price hikes. Investors are now focused on the potential speed and size of future rate increases.

The dollar index rose 0.123 percent, with the euro falling 0.24 percent to $1.1022.

The Japanese yen fell 0.17 percent against the greenback to 119.46 per dollar, its lowest level since February 2016.

The British pound was trading in late trading, down 0.06 percent at 1.3168 dollars.

In the cryptocurrency market, Bitcoin fell 1.84% to $40,973.32 while Ether fell 1.33% to $2,908.60.