Dollar on defensive after Fed dampens rate hike speculation


The dollar eased on Thursday as the U.S. Federal Reserve said it was unlikely to raise interest rates through all of 2023 despite a swift economic recovery.

The dollar index traded at 91.488 after hitting a two-week low of 91.340 as Fed Chair Jerome Powell dampened speculations on stimulus policy. 

The euro fell to $1.19655 but lingered near a one-week high of $1.19900 after climbing 0.6% on Wednesday.

Against the yen, the dollar slipped 0.2% to 108.620. The pound stood at $1.3946 after climbing 0.5% overnight. 

The Aussie rose to a two-week peak of $0.78350, while the kiwi briefly lost momentum as New Zealand reported a sudden contraction in GDP for the last quarter of 2020.

The kiwi stood at $0.7241. Bitcoin firmed at $58,954.64 after recovering from a one-week low of $53,221 hit on Tuesday. 

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