NEW YORK: The U.S. dollar eased back from earlier losses but still remained broadly lower against other major currencies on Monday.
The greenback was lower ahead of Fed Chair Jerome Powell’s first Congressional testimony on Tuesday and Thursday. Investors will be listening closely to his views on the state of the economy and any clues about interest rates being raised faster than expected.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.16% to 89.67 by 8:31 AM ET (13:31 GMT), easing back from an overnight low of 89.44.
A lower U.S. 10-year Treasury yield also weakened the U.S. dollar. The yield on the benchmark 10-year note 2.848%, as it eased back from a four year high of 2.957% last week.
Meanwhile the euro and the pound remained higher, with EUR/USD up 0.17% to 1.2325 and GBP/USD increasing 0.49% to 1.4044.
The pound remained supported after the Bank of England’s deputy governor said over the weekend that interest rates might need to rise sooner than expected if wages grow as fast the central bank expects in the early part of 2018.
The pound was also supported by the Labour Party taking a softer stance on Brexit. Party leader Jeremy Corbyn said on Monday that his party supported a customs union with the European Union once Britain leaves the EU.
Elsewhere, the yen and the Swiss franc were flat, with USD/JPY at 106.79 and with USD/CHF shedding 0.03% to 0.9356.
The Australian and New Zealand dollars were also stronger, with AUD/USD up 0.6% at 0.7843 and with NZD/USD gaining 0.30% to 0.7315.