The dollar is weaker today after Fed Chairman Jerome Powell indicated yesterday that the Federal Reserve is likely to slow asset purchases.
The dollar index against a basket of six other currencies was down 0.1% at 95.970.
EUR/USD was up 0.1% to 1.1337.
USD/JPY was up 0.2% to 113.37.
GBP/USD was up 0.2% to 1.3316.
AUD/USD increased 0.4% to 0.7151.
On Tuesday, the Fed Chairman had stated the following in front of the Senate Banking Committee:
“At this point, the economy is very strong and inflation pressures are increasing. Our concluding consideration of the asset purchase is reasonable. Maybe a couple of months ago.”
This includes the possibility that the Fed could reduce its bond purchases by $15 billion per month. The speed-up could lead to a point from which the central bank feels safe to raise the key interest rate.
USD/CNY rose 0.1% to 6.3661 in Asia as the RMB gained after a better-than-expected November manufacturing PMI.
Similarly, the Korean won hit a two-week high after trade data beat expectations.
USD/TRY fell 0.1% to 13.4557 after the lira fell to a record low on Tuesday.