U.S. Dollar Higher As Powell Affirms More Interest Rate Hikes

(RTTNews) - The U.S. dollar appreciated against its major counterparts in the New York session on Wednesday, as Federal Reserve Chair Jerome Powell said that he would not rule out two consecutive rate hikes at the central bank's upcoming meetings.

Speaking in a panel discussion at the European Central Bank Forum in Sintra, Powell said that a 'strong majority' of policymakers favour two more rate hikes this year.

"If you look at the data over the last quarter, what you see is stronger than expected growth, a tighter than expected labor market and higher than expected inflation," Powell said.

"That tells us that although policy is restrictive, it may not be restrictive enough and it has not been restrictive for long enough."

"We have only made a decision about the June meeting, but I wouldn't take moving at consecutive meetings off the table at all," the Fed chief added.

The greenback climbed to a 2-day high of 1.0896 against the euro and a 2-week high of 1.2606 against the pound, from its early lows of 1.0962 and 1.2751, respectively. The greenback is seen finding resistance around 1.06 against the euro and 1.24 against the pound.

The greenback firmed to a 7-1/2-month high of 144.61 against the yen and near a 2-week high of 1.3276 against the loonie, off its early lows of 143.72 and 1.3188, respectively. The greenback may find resistance around 148.00 against the yen and 1.34 against the loonie.

The greenback touched 0.6596 against the aussie, its highest level since June 5. On the upside, 0.63 is possibly seen as its next resistance level.

The greenback remained higher against the kiwi, at near a 3-week high of 0.6069. If the currency rises further, it may find resistance around the 0.585 level.

The greenback remained firm at a 5-day high of 0.8986 against the franc. This may be compared to its previous 2-day low of 0.8922. The greenback is poised to challenge resistance around the 0.92 level.