The U.S. dollar handed back some of its earlier gains in European trade Thursday, while the pound was flat ahead of the latest Bank of England rate decision. Helping the dollar this week has been a reassessment of the likelihood of the Federal Reserve to maintain its aggressive monetary tightening stance in the wake of reasonable economic data and hawkish comments from a number of policymakers. Additionally, a number of Fed policymakers, including San Francisco Fed President Mary Daly and Minneapolis Fed President Neel Kashkari on Wednesday, have been keen this week to emphasize that the fight to rein in soaring inflation was set to continue, even if the associated rate hikes could significantly curb economic activity.
Investing.com-- Most Asian currencies kept to a tight range on Thursday as the U.S. dollar remained underpinned by expectations of a hawkish Fed, while the Taiwan dollar fell the most amid continued concerns over a clash with China. The Taiwan dollar lost about 0.2% and stayed around two-year lows of 30 to the dollar. An escalation in tensions with China, amid U.S. House of Representatives Speaker Nancy Pelosi’s Taipei visit, has battered the currency this week.