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U.S. Dollar Flat After Powell Comments

Investing.com - The U.S. dollar was unmoved on Wednesday after prepared remarks from Federal Reserve Chairman Jerome Powell.

Powell, who is testifying in front of Congress, said that while the economy is on track right now, there are risks to the current economic expansion.

“We see the current stance of monetary policy as likely to remain appropriate as long as incoming information about the economy remains broadly consistent with our outlook,” Powell said Wednesday in remarks prepared for delivery to the congressional Joint Economic Committee in Washington. “However, noteworthy risks to this outlook remain.”

The Federal Open Market Committee cut rates three times this year and comments from Powell indicate the central bank is keeping downside risks in mind, but a change in rates is unlikely anytime soon.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was flat at 98.170 as of 10:51 AM ET (15:51 GMT).

The safe-haven Japanese yen was higher with USD/JPY down 0.3% to 108.71.

Elsewhere, the New Zealand dollar surged, with NZD/USD up 1.1% to 0.6396 after the Reserve Bank of New Zealand left rates on hold, after cutting twice this year. It said there was no urgency to ease policy.

Sterling was lower, with GBP/USD down 0.1% to 1.2836. While the EUR/USD was flat at 1.1008.

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