SINGAPORE : The dollar was riding high on Wednesday, flung to three-month peaks when Federal Reserve Chair Jerome Powell surprised investors by warning that interest rates might need to go up faster and higher than expected to rein in inflation.The rising greenback broke above its 200-day moving average a
SINGAPORE : The dollar was riding high on Wednesday, flung to three-month peaks when Federal Reserve Chair Jerome Powell surprised investors by warning that interest rates might need to go up faster and higher than expected to rein in inflation.
The Australian dollar was nursing even larger losses as Powell's hawkishness contrasted with a softening in tone from Australia's central bank, consigning the Aussie to a 2 per cent overnight drop to a four-month low of $0.6580. "If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes," he said.
"If those data prints exceed expectations at all, based on what Powell said that'd pretty much guarantee a 50-basis point hike in March," said IG Markets analyst Tony Sycamore in Sydney. The blockbuster week of central bank meetings and speakers rolls on later in the day, with the Bank of Canada setting policy and European Central Bank President Christine Lagarde speaking.
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