Dollar eases

SINGAPORE/TOKYO: The dollar eased on Tuesday as investors awaited a slew of economic data this week and Federal Reserve Chairman Jerome Powell´s testimony, which could determine whether the U.S. currency´s recovery from a three-year low has more room to run.

The dollar´s index against a basket of six major currencies fell 0.1 percent to 89.728.

The greenback, however, is still 1.7 percent above a three-year trough near 88.25 set on Feb. 16.

The focus this week is Powell´s first congressional testimony, at a time when investors are nervous over the pace of U.S. monetary tightening as it unwinds years of stimulus.

Powell will testify on the central bank´s semi-annual report on monetary policy and the economy on Tuesday, before the U.S. House of Representatives´ Financial Services Committee.

Powell will probably sound optimistic on the economic outlook, but stress patience in assessing whether inflation will head higher, said Roy Teo, investment strategist for LGT Bank in Singapore. "The dollar is unlikely to get a major lift after Powell´s speech," Teo said.

from The News International - Business http://ift.tt/2oCB4km