US Dollar Closes the Week on a Strong Note Despite Powell’s Comments

The US dollar rebounded towards the highest level seen in several months with investors shifting their focus back towards inflation data even as the GBP dipped after the BOE refused to hint at any dovish plans in its recent policy meeting. At the time of writing, the US dollar index DXY is trading around 91.78.

The bullish moves in the greenback were triggered last week after the FOMC statement revealed an increasing interest among policymakers towards hiking interest rates sooner than previously planned. Although the hawkish tones were downplayed by Fed chair Jerome Powell during his congressional testimony earlier this week, the US currency managed to hold on to its recent strength after a brief dip.

Later today, the US dollar could experience considerable volatility on the release of core PCE data. According to a recent Reuters poll, core personal consumption expenditures – a key gauge of inflation, is expected to rise by 3.4% YoY against the previous month’s reading of 3.1%.

The renewed bout of strength in the greenback is weighing on other major currencies, keeping them trading under pressure despite prospects of their respective central banks having a more hawkish outlook than that of the Fed. The EUR trades below the key $1.20 level while the JPY sits close to the lowest levels seen in 15 months. Meanwhile, commodity currencies AUD and NZD are also trading well below multi-month highs.

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Aiswarya Gopan

Financial Writer & Editor - Asia & Europe Desk

Aiswarya Gopan is a financial journalist, editor, and content strategist with more than 19 years of experience across financial markets, fintech, blockchain, and technology. She has worked with leading cryptocurrency exchanges, including BingX and KuCoin, driving content strategy, market research, and editorial initiatives covering digital assets, DeFi, Web3, and global financial markets. Drawing on a background in cybersecurity, technology journalism, and market research, Aiswarya specializes in translating complex financial and blockchain developments into clear, timely insights. At FX Leaders, she covers cryptocurrency, stocks, forex, and macroeconomic developments across the Asian and European trading sessions.

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