The dollar was down on Friday morning in Asia, giving up some of its earlier gains as the rally from the U.S. Federal Reserve\u2019s new strategy to increase employment, and tolerance for higher inflation, wore off.<\/p>\n\n\n\n
Speaking at the Jackson Hole symposium on Thursday, U.S. Federal Reserve Chairman Jerome Powell said that the Fed would target an average inflation rate of 2%, countering years of super-low inflation.<\/p>\n\n\n\n
Although the dollar fell against the yen and euro immediately after Powell\u2019s comments, it gained back the losses as U.S. Treasury yields rose to their highest levels in several months.<\/p>\n\n\n\n
The U.S. Dollar Index<\/a> that tracks the greenback against a basket of other currencies edged down 0.20% to 92.802 by 12:24 AM ET (5:24 GMT).<\/p>\n\n\n\n Some investors were optimistic that the rising treasury yields would continue to boost the dollar.<\/p>\n\n\n\n \u201cSince the FOMC meeting in June, the treasury yields have declined and the dollar fell, but I think that will not be the case for the time being, especially after the Fed\u2019s speech. The market is more likely to see higher treasury yields,\u201d Masafumi Yamamoto, chief currency strategist at Mizuho Securities, told Reuters.<\/p>\n\n\n\n But other investors struck a more cautious note.<\/p>\n\n\n\n \u201cIt\u2019s clear we saw a \u2018buy the rumor, sell the fact\u2019 play out, notably in U.S. Treasuries, which have led broad market moves,\u201d said Pepperstone head of research Chris Weston<\/p>\n\n\n\n \u201cThe move higher in Treasury yields post-Powell did promote a USD rally, although we find it flat on the day, with a mixed picture across the well-traded FX pairs.\u201d<\/p>\n\n\n\n Meanwhile, the USD\/JPY<\/a> pair was up 0.26% to 106.83. Investors are now awaiting Japanese Prime Minister Shinzo Abe\u2019s press conference, due to take place later in the day, where Abe is widely expected to address the state of his health and whether he will remain in the post.<\/p>\n\n\n\n The AUD\/USD<\/a> pair gained 0.42% to 0.7288 and the NZD\/USD<\/a> pair was up 0.34% to 0.6660.<\/p>\n\n\n\n The USD\/CNY<\/a> pair was down 0.22% to 6.8770 and the GBP\/USD<\/a> pair gained 0.34% to 1.3243.<\/p>\n","protected":false},"excerpt":{"rendered":" The dollar was down on Friday morning in Asia, giving up some of its earlier gains as the rally from the U.S. Federal Reserve\u2019s new strategy to increase employment, and tolerance for higher inflation, wore off. Speaking at the Jackson Hole symposium on Thursday, U.S. Federal Reserve Chairman Jerome Powell Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3607","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/3607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/comments?post=3607"}],"version-history":[{"count":1,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/3607\/revisions"}],"predecessor-version":[{"id":3608,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/posts\/3607\/revisions\/3608"}],"wp:attachment":[{"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/media?parent=3607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/categories?post=3607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forexvarsity.com\/welcome\/wp-json\/wp\/v2\/tags?post=3607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}