On Monday, August 23, the US Dollar edged lower as Fed Chairman Jerome Powell maintained his dovish stance. Meanwhile, risk-sensitive currencies edged higher.
The US Dollar Index, which trails the greenback in opposition to its six other rival currencies, plummeted 0.14% to 93.373.
An analyst stated that the fall of the US Dollar is partly due to Fed Chair Jerome Powell’s strong stance on the dovish side until now.
However, Dallas Fed President Robert Kaplan spilled a hint before the Jackson Hole Online Conference on August 26.
Based on his outlook regarding the central bank tapering assets sooner could be modified if the coronavirus continues to surge.
An economist said that the delay in asset tapering will not negatively affect the US Dollar.
According to some investors, their bets on Fed’s tapering of assets happening earlier so far boosted the greenback.
The National Australia Bank commented that the asset tapering delay would not necessarily mean that the US Dollar will plummet. This is even if the Federal Reserve will be more dovish.
Another economist projected that the Fed might be hawkish at the conferenced on Friday, which can result in the firmness of the US Dollar.
Meanwhile, in Australia and New Zealand, the continuing reign of the COVID-19 delta variant is expanding. Therefore, keeping its currencies heavy, according to an analyst.
He added that the risk-sensitive Aussie and Kiwi dollars were gradually gaining some of their losses.
However, it is still early to conclude that the Australian dollar’s downtrend will end.
The AUD/USD pair soared 0.25% to 0.7153 but is still near its 9 ½ month low of 0.71065.
Likewise, the NZD/USD smashed 0.15% to 0.6836.
Exchange Rates over US Dollar
Furthermore, the USD/JPY jumped 0.17% to 110.00 with the Japanese government tripling its coronavirus test, therefore, altering its pandemic curb approach.
Also, the GBP/USD improved 0.13% to 1.3641, which was up from its one-month low of 1.3602 last Friday.
The same with EUR/USD which boosted 0.13% to 1.1712, higher than its nine-and-a-half-month low of 1.1664 last August 20.
On the other hand, the USD/CHF and the USD/CAD both declined 0.13% to 0.9160 and 0.60% to 1.2745, respectively.
Consequently, the USD/CNY decreased 0.12% to 6.4936 and the USD/SEK crashed 0.63% to 8.7553.
Elsewhere, the USD/RUB and the USD/TRY both lost 0.30% to 74.0396 and 0.14% to 8.4800, respectively.