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3 Minutes to Read (Reuters) – LONDON (Reuters) – The kiwi dollar jumped 1% against the greenback on Wednesday after New Zealand’s central bank announced the end of its pandemic-linked bond purchases, paving the way for an interest rate hike by the end of the year. In this illustration photo taken on June 22, 2017, British Pound Sterling and US Dollar bills can be seen. tmsnrt.rs/2RBWI5E tmsnrt.rs/2RBWI5E tmsnrt.rs/2RBWI5E tmsnrt.rs/2RBWI5E tmsnrt.rs/2RBWI5E t Meanwhile, the dollar fell slightly from three-month highs against the euro after data released a day earlier revealed that inflation hit 13-year highs in June due to supply limitations and higher travel-related costs. The greenback is expected to be influenced by Fed Chair Jerome Powell’s two-day congressional hearing, which begins later on Wednesday. Markets are looking for hints as to when the central bank would start withdrawing its stimulus and whether it still believes increased inflation is a blip on the radar. “The market consensus appears to be that Chair Powell will attempt to temper that change by speaking cautiously about QE withdrawal. One reason Powell emphasizes the need for prudence is the rise in Delta variant infections in the United States and around the world “In a note, MUFG strategists stated. The dollar index fell 0.2 percent to 92.64 by 0730 GMT, after reaching as high as 92.832 earlier in the day, barely below the 92.844 level touched last week for the first time since April 5. For the second day in a row, it rose to $1.17720, its highest level since April 5, before falling 0.2 percent to $1.1795. In the meanwhile, focus has shifted to central banks that are moving forward with plans to phase out pandemic-era support, as well as concerns about economic growth arising from an increase in COVID-19 case loads around the world. New Zealand’s central bank announced it would end a NZ$100 billion ($70 billion) bond-buying program, prompting banks to call for a rate hike as early as August, putting it in the lead among countries to boost interest rates. Wider currency market sentiment remained risk averse, with perceived safe-haven currencies such as the Swiss franc and the Japanese yen edging higher while the Norwegian crown fell. Saikat Chatterjee contributed additional reporting, and Jacqueline Wong edited the piece./nRead More

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