The U.S. dollar turned in a somewhat subdued performance against its counterparts on Tuesday as global equities moved higher, triggering some appetite for riskier assets.
The dollar had moved higher on Monday after Federal Reserve Chair Jerome Powell hinted at tighter monetary policy from the central bank.
“We will take the necessary steps to ensure a return to price stability,” Powell said in remarks to the National Association for Business Economics on Monday. “In particular, if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at upcoming meetings, we will do so.”
He added, “And if we determine that we need to tighten beyond common measures of neutral and into a more restrictive stance, we will do that as well.”
After Powell’s remarks, CME Group’s FedWatch Tool is currently indicating a 33.9% chance the Fed will raise rates by 25 basis points in May and a 66.1% chance of a 50 basis point rate hike.
The dollar index, which extended overnight gains and climbed to 98.97 in the Asian session today, retreated subsequently and dropped to 98.32. It is currently hovering around 98.45, down slightly from the previous close.
Against the Euro, the dollar is at $1.1031, easing from $1.1017.
The dollar is trading at $1.3257 against Pound Sterling, weakening from the previous close of $1.3169.
The dollar is gaining against the Japanese currency, fetching 120.82 yen a unit, more than 1.1% up from the previous close of 119.48 yen.
Against the Aussie, the dollar is at 0.7466 down from 0.7401.
The Swiss franc is at 0.9334 a dollar, little changed from the previous close of 0.9338.
Meanwhile, the loonie is gaining marginally at C$ 1.2576 a dollar.