The US dollar continued to lose ground against the world's major currencies on Thursday as markets assessed Federal Reserve Chairman Jerome Powell's speech at a forum in Washington.
"For now, given the strength of the labor market and progress on inflation, it is appropriate to allow additional time for restrictive policy to work and to be guided by the data and the evolving outlook," Powell said.
The statement indicated that the US central bank would maintain its monetary policy for some time.
CME's FedWatch data showed that the markets are now pricing at a 44 basis point rate cut from the Fed, well below the 160 basis points expected at the beginning of the year.
At the same time, the yen was supported by a statement from Japan's Vice Minister of Finance for International Affairs, Masato Kanda, that the G7 countries reiterated their stance that excessive currency volatility is undesirable.
The USD/JPY fell 0.17% to 154.12.
Although markets are expecting Japanese authorities to intervene at 155, DBS Bank's Joanna Chang believes it will happen at 156 given the dollar's strength.
According to Reuters, the dollar has been supported recently by strong US economic data and tensions in the Middle East.
The EUR/USD and GBP/USD were up 0.13% and 0.20% at 1.0685 and 1.2471, respectively.
The US Dollar Index (DXY), which tracks the greenback against a basket of global currencies, fell 0.32% to 105.78.
AUD/USD and NZD/USD rose 0.28% and 0.25% to 0.5930, respectively, as lower US Treasury yields pressured the greenback.
The yield on the 10-year US Treasury note fell 0.20% to 4.575.
The USD/CNY remains steady at 7.2379.
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