By Scott Kanowsky
Investing.com — The U.S. dollar slipped slightly on Friday, as investors remained cautious of the impact of tighter central bank policies around the world aimed at curbing soaring inflation.
As of 02:35 AM EST (0635 GMT), the – which tracks the greenback against a basket of six currencies – was marginally in the red, down 0.16% to 104.27. The index is trading below a two-decade peak of 105.79 reached on June 15 following a 75 basis point interest by the Federal Reserve.
The dollar is moving lower from that elevated level due to concerns that such aggressive monetary tightening may end up sparking a recession.
Fed Chair Jerome Powell warned in a testimony on Capitol Hill earlier this week that while it does not intend to cause a wider slowdown, “it’s certainly a possibility” despite his confidence that the U.S. economy will be able to withstand a sharp rise in borrowing costs. On Thursday, Powell added that the Fed has an “unconditional” commitment to fighting .
The eased to 3.087% in the wake of Powell’s comments.
Meanwhile, remained firm, edging slightly higher by 0.05% to $1.22, following data on Friday that showed volumes declined by 0.5% in May, but were above analyst estimates.
Elsewhere, rose 0.19% to $1.05 ahead of statements from European Central Bank speakers later today and data in Germany.
was down 0.11% to trade at ¥134.79 after Japanese came in above the Bank of Japan’s 2% target, casting some doubt on the bank’s loose monetary policy stance.
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