WASHINGTON (dpa-AFX) - The U.S. dollar rebounded from recent weakness on Tuesday, supported by hawkish comments from a few Fed officials, including Minneapolis Federal Reserve President Neel Kashkari.
Speaking at the Milken Institute Global Conference, Kashkari said the most likely scenario is rates to be held at current levels for an extended period of time.
'I would need to see multiple positive inflation readings suggesting that the disinflation process is on track' before cutting rates,' Kashkari said, and added that he could not rule out the Fed once again raising rates, calling the bar for hiking rates 'quite high' but 'not infinite.'
Earlier in the week, Fed Bank of Richmond President Thomas Barkin said that he feels the risks are weighted towards more inflation. Meanwhile, New York counterpart John Williams said that the timing of rate cuts will depend on the totality of the incoming data.
The dollar index, which was around 105 in early New York session, climbed to 105.45 before easing a bit to 105.37, still well above the previous close of 105.05.
Against the Euro, the dollar firmed to 1.0756 after having weakened to 1.0790. Against Pound Sterling, the currency strengthened to 1.2508 from 1.2562.
The dollar weakened against the Japanese currency, fetching 154.69 yen a unit.
Against the Aussie, the dollar firmed to 0.6597. The Aussie weakened as the Reserve Bank of Australia left its benchmark interest rates unchanged.
The policy board of the RBA, led by Governor Michele Bullock, decided to maintain the cash rate target at 4.35%. The board also retained the interest rate paid on Exchange Settlement balances at 4.25%.
The Swiss franc was weak against the greenback at CHF 0.9084. The Loonie weakened to 1.3727 against the U.S. dollar.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
