(ABM FN-Dow Jones) The euro fell to $1.0731 on Tuesday after Fed Chairman Jerome Powell indicated on Friday that US interest rates can remain at current levels as long as the US economy allows it.
“Powell was decidedly hawkish on Friday and that ensures a stronger dollar,” currency trader Stéphane van der Meer of currency broker Ebury told ABM Financial News on Tuesday. “Powell also indicated on Friday that two things are being monitored for interest rate policy: the economy and political developments,” said Van der Meer.
For Van der Meer, Tuesday’s target is German inflation for March and a large number of Fed speakers.
The Reserve Bank of Australia signals slightly more balance in the outlook for the economy than a year ago, according to the minutes recorded on Tuesday at the bank’s most recent policy meeting on March 18 and 19. It noted a persistent inflation risk and a weak economy. However, these have become more balanced. Further action was ruled out by the RBA.
The euro was 0.1 percent lower on Tuesday at $ 1.0731. The European currency was 0.2 percent lower at 0.8542 British pounds. The British pound rose 0.1 percent to 1.2563 dollars. The Australian dollar rose 0.3 percent to 0.6506 US dollar.
Source: ABM Financial News
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