The US dollar index fell in early trading, Thursday, to its lowest level in three and a half months, on the impact of statements by Federal Reserve Chairman Jerome Powell.
And Wednesday, Powell said in a speech that it makes sense for “the pace of rate increases to slow down as we approach the level of adjustment that is necessary and sufficient to bring down inflation.”
He stated that the time to adjust the pace of interest rate increases may be at the meeting of the US Federal Open Market Committee, during next December.
The US dollar index fell in the middle of Thursday’s session, by 0.36 percent, to 105.4, its lowest level in three and a half months.
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Powell said, “Given the progress we have made in tightening monetary policy… the timing of easing the pace of interest rate hikes is less important than the question of the extent of additional increases needed to control inflation.”
The inflation rate in the US market recorded the highest level since November 1981, recording 9.1 percent, before it slowed in the subsequent months to a level of 7.7 percent in October.