Foreshadowed Rate Hike Pushes Dollar Higher – 26 January, 2022

The dollar reached a multi-week high against a basket of major currencies after Federal Reserve chair Jerome Powell hinted to investors there would be a U.S. rate hike in early March. The dollar was up 0.7% against the yen after Powell’s remarks, its steepest daily jump in more than two months. The yen was slightly lower at 114.74 per dollar, while the euro dropped to a six-week low at $1.2301. The Australian dollar was 0.4% lower at $0.7076 and the New Zealand dollar was just above a 15-month low at $0.6626. Sterling was at $1.3454.