Dollar drops as Powell releases dovish stand on bond tapering
The dollar opened the trading week with a poor performance on Monday morning in Asia. This came after a dovish statement on bond tapering from the United States’ Federal Reserve Chairman Jerome Powell during the Jackson Hole symposium on Friday.
The U.S. Dollar Index that measures the greenback against other major currencies declined 0.06% to 92.640 by 12:01 AM ET (4:01 AM GMT).
The USD/JPY pair dropped 0.06% to 109.76.
The AUD/USD pair slid 0.10 % to 0.7303, while the NZD/USD pair was down 0.08% to 0.6999.
The USD/CNY pair shed 0.05% to 6.4678, with Caixin Manufacturing Purchasing Managers Index (PMI) due on Wednesday.
The GBP/USD pair nudged 0.04% higher to 1.3769.
Powell stated that the Fed is likely to begin reducing stimulus measures before the end of 2021, but did not provide a timeframe. However, he reiterated that the central bank is not rushing the interest rate hike.
Investors are now expecting the U.S. nonfarm payroll on Friday for clues on the start of asset tapering.