The dollar was mostly lower in early trading in Europe Thursday, extending losses made on Wednesday after Federal Reserve Chairman Jerome Powell dropped his clearest hint yet that the central bank will cut interest rates at its next policy meeting at the end of the month.
By 3:45 AM ET (0745 GMT), the dollar index, which measures the greenback against a basket of developed-market peers, was at 96.553, rebounding a little from an overnight low of 96.463. That’s around half a percent lower than it was before Powell begun his testimony.
The dollar also slipped against the British pound, which has been better supported since data showing that the economy rebounded somewhat in May. Sterling was at $1.2534, up nearly a cent from this week’s lows.