The dollar fell after the US Federal Reserve announced that it had passed a critical point in fighting inflation, which gave the markets hope that the campaign to raise interest rates is nearing the end.
Council Chairman Jerome Powell noted yesterday that “the process of de-inflation has begun” in the world’s largest economy, but also noted that interest rates will continue to rise and cuts are not imminent.
The dollar fell after Powell’s remarks. The dollar index fell to a nine-month low of 100.80 yesterday, against a basket of major currencies. The dollar was last down 0.07 percent at 100.88, after closing down more than 1 percent.
The Australian dollar rose to an eight-month high of $0.7158 in early Asian trade. It was bought in one of the transactions at $0.7150, after rising 1.2 percent in the previous session.
The New Zealand dollar also reached its highest level in eight months at $ 0.65365, after jumping more than one percent yesterday. The dollar fell more than 0.5 percent against the Japanese yen to a session low of 128.17.
