The dollar rose across the board on Wednesday, climbing to a six-month high against the yen, after Federal Reserve Chairman Jerome Powell gave an upbeat outlook for the US economy.
In closely watched congressional testimony on Tuesday, Powell said he saw the United States on course for years more of steady growth, while largely discounting the risks associated with a trade war.
The dollar was up 0.05 per cent at 112.955 yen JPY= after going as high as 113.08, its strongest since January 9.
The euro dipped 0.05 per cent to $1.1653 EUR= after losing 0.4 per cent overnight, reports Reuters.
An easing of risk aversion was reflected on Wall Street, which rose overnight and supported Asian stocks on Wednesday after Powell’s optimistic analysis of the US economy.
The 10-year Treasury yield firmed this week but it has been on a steady decline from a seven-year high above 3 per cent set in May.
The two-year Treasury yield, most sensitive to the market’s views on changes in Fed policy, has risen to a decade-high.
The pound was little changed at $1.3110 GBP=D3 after slipping 1.0 per cent the previous day.
The dollar index against a basket of six major currencies edged up by 0.1 per cent to 95.038, after rising roughly 0.5 per cent the previous day.
The Australian dollar was a shade lower at $0.7384 AUD=D3, extending the retreat from Tuesday when it lost 0.45 per cent against a broadly stronger greenback.
