The dollar held near a one-week low against its rivals on Tuesday as currency markets waited for testimony from Fed Chairman Jerome Powell that might give a further boost to risk appetite.
Risky assets had a strong start to the week with the Chinese currency hitting a seven-month high on Monday after U.S. President Donald Trump confirmed he would delay a planned hike in tariffs on Chinese imports.
Powell will testify before the Senate Banking Committee later on Tuesday, the first day of a two-day appearance before lawmakers. Market watchers expect him to underline the Fed’s sensitivity to asset prices and deliver an upbeat assessment of domestic growth prospects.
Against a basket of other currencies, the dollar was broadly steady at 96.43 after hitting its lowest level in a week at 96.31 in Asian trading.
The pound was last up half a percent on the day at $1.3152 and it gained by a similar amount against the euro to 86.30 pence.
Source : Reuters