US DOLLAR EXTENDS DOWNSIDE AHEAD OF POWELL SPEECH; FIRM YEN

Published on Aug 23, 2024 11:49

The US dollar extends recent sharp slide as investors prepare for Federal Reserve Chair Jerome Powell�s speech at the Jackson Hole symposium later in the global day. After hinting at a rate cut by September in FOMC minutes, markets await clarity on magnitude of the rate cut in the upcoming speech. The dollar index is staying near the lower end of 101 mark at its lowest level for the year so far at 101.23, down 0.17% on the day. Benchmark treasuries yield on the US ten-year note, which moves opposite of its price, lingers around 3.84 percent. Besides, strength in the Japanese currency following a speech by Bank of Japan (BoJ) Governor Kazuo Ueda in Parliament on Friday is adding to downside for the greenback. BOJ Governor Kazuo Ueda said in his Diet testimony that �Markets at home and abroad remain unstable, so we will be highly vigilant to market developments for the time being,� However, Ueda said the central bank was ready to raise rates if the economy and prices move in line with its forecast.