Powell pushes dollar to three-month high
The dollar was riding high on Wednesday, flung to three-month peaks when Federal Reserve Chair Jerome Powell surprised investors by warning that interest rates might need to go up faster and higher than expected to rein in inflation.
The rising greenback broke above its 200-day moving average against the yen for the first time this year in Asia trade, hitting its highest since mid-December at 137.49 yen.
Overnight it had shot more than 1.2% higher on the euro, its biggest one-day move in five months. It last traded at $1.0550 per euro.
The Australian dollar was nursing even larger losses as Powell’s hawkishness contrasted with a softening in tone from Australia’s central bank, consigning the Aussie to a 2% overnight drop to a four-month low of $0.6580.
The U.S. dollar index, which measures the dollar against a basket of six major currencies, jumped 1.3% overnight to a three-month peak of 105.65.
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