Investing.com – The dollar steadied on Thursday following a drop in the previous session after dovish comments by Federal Reserve Chairman Jerome Powell, who said interest rates were now close to the “neutral” level.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, edged up 0.15% to 96.82 by 10:15 AM ET (15:15 AM GMT), after falling 0.62% on Wednesday.
In a speech on Wednesday, Powell said interest rates were “just below” the neutral level at which they neither stimulate nor hinder economic growth. The comments came less than two months after he said rates were probably “a long way” from that point.
Investors viewed the comments as an indication that the Fed would slow its program of hiking interest rates.
Market watchers were looking ahead to the minutes of the Fed’s November meeting due to be released later Thursday, for fresh indications on the path of interest rates.
The Fed is widely expected to raise rates for a fourth time this year at its upcoming meeting in December and has indicated that it may raise rates three more times in 2019, but markets are pricing in just one rate hike next year.