U.S. dollar retreats further after Powell's comments

Source: Xinhua| 2018-02-14 06:20:30|Editor: yan
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NEW YORK, Feb. 13 (Xinhua) -- The U.S. dollar decreased against other major currencies on Tuesday, as U.S. Federal Reserve chairman Jerome Powell said that the central bank will remain alert to risks to financial stability in the wake of recent market rout.

"We will remain alert to any developing risks to financial stability," said Powell at a ceremonial swearing-in event on Tuesday.

This is the first open remarks Powell made since he took office as the head of the central bank a week ago. Since then, the U.S. stock market has entered a bumpy road, with major stock indexes dropping over 10 percent.

On Tuesday, Powell stressed that the Fed will "preserve the essential gains in financial regulation while seeking to ensure that our policies are as efficient as possible."

He also reiterated that the central bank will continue gradually to raise interest rates and rewind its balance sheet, against the background of strong global recovery.

Analysts said that Powell's remarks helped to calm down nervous investors and made the U.S. dollar less attractive.

The dollar index, which measures the greenback against six major peers, decreased 0.56 percent at 89.707 in late trading.

In late New York trading, the euro rose to 1.2363 dollars from 1.2285 dollars in the previous session, and the British pound climbed to 1.3886 dollars from 1.3830 U.S. dollars in the previous session. The Australian dollar gained to 0.7859 dollar from 0.7845 dollar.

The U.S. dollar bought 107.68 Japanese yen, lower than 108.68 yen of the previous session. The U.S. dollar dipped to 0.9342 Swiss franc from 0.9389 Swiss francs, and it moved down to 1.2594 Canadian dollars from 1.2603 Canadian dollars.