2 Minute Read* FX rates around the world are depicted graphically. Reuters, tmsnrt.rs/2RBWI5ELONDON, July 15 – On Thursday, the euro rebounded from a more than three-and-a-half-month low versus the US dollar after Fed Chairman Powell’s dovish remarks broke a recent surge in Treasury yields. Fed Chair Jerome Powell said the US economy was “still a ways off” from the levels the central bank intended to see before decreasing its monetary assistance in testimony to the US Congress. The euro held steady against the dollar at $1.1831, recovering from an early April low of $1.1772 hit before Powell’s testimony the day before. “Overall, the statements suggest that the Fed will begin reducing quantitative easing later this year, but it has the flexibility to start earlier in September,” MUFG strategists wrote in a daily note. Aside from the euro, market sentiment remained gloomy, with the dollar holding its ground versus other major currencies. Mixed economic data from China, which showed a slower-than-expected rate of growth but evidence of more resilient domestic demand, did little to lift spirits. The safe-haven yen surged sharply, closing up 0.1 percent at 109.86 per dollar and near multi-month highs of 129.91 per euro. The Australian dollar plummeted to $0.7453, while the New Zealand dollar slid below 70 cents to $0.6998. “The market is still on an unpredictable road,” said Rodrigo Catril, a strategist at National Australia Bank. Despite 10-year benchmark U.S. Treasury yields falling for the second straight session, the dollar held steady at 92.41 against a basket of currencies. Even though the Bank of Canada continued to withdraw its policy support on Wednesday, the Canadian currency fell on Thursday, aided by lower oil prices. Saikat Chatterjee contributed reporting, and Hugh Lawson edited the piece./n
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