The dollar rose Wednesday, June 21, before Federal Reserve Chairman Jerome Powell speaks to Congress as his comments are expected to reflect tightening monetary policy, while the British pound rose slightly after stronger-than-expected British inflation data.
The consumer price index in Britain stabilized at 8.7% in May, despite hopes that it would decline from its level in April. Sterling rose briefly 0.3% against the dollar to $1.2803 before settling at $1.2765.
It also rose slightly against the Euro and the Yen as dealers bet that the Bank of England would raise rates and markets factored in the possibility of another 150bps hike to a peak of 6% in 12 months.
The euro held steady at $1.0914 in Asian transactions, while the yen fell slightly to 141.80 against the dollar after the Bank of Japan's monetary policy meeting minutes showed and bank officials indicated sticking to monetary easing, while the focus of dealers shifted to the US Federal Reserve.
The Chinese yuan fell to its lowest level in 7 months against the dollar at 7.1987 in domestic transactions, while the yuan in foreign transactions exceeded 7.2 against the dollar.
The Australian dollar fell 0.9% in the evening, and recorded in the latest trading at $0.6786, and the New Zealand dollar declined before settling at about $0.6178.
The dollar index rose slightly to 102.60.
And the Bitcoin cryptocurrency continued its gains, which it recorded in the evening, to exceed the $ 29,000 barrier for the first time since the end of May, after the launch of a new digital currency exchange platform supported by Fidelity, Citadel Securities, and Charles Schwab.
