Dollar declines as Fed’s Powell maintains dovish message
- U.S. producer prices surged in June
- Reserve Bank of New Zealand ends bond purchases
- Bank of Canada tapers bond purchases
NEW YORK, July 14 (Reuters) – The dollar pared recent gains on Wednesday after Federal Reserve Chair Jerome Powell told Congress the U.S. economy was “still a ways off” from levels the central bank wanted to see before tapering its monetary support.
His comments came as a report showed U.S. producer prices rose more than expected, posting their biggest annual increase in more than 10-1/2 years. A day earlier, data showed June U.S. inflation hit its highest in more than 13 years. read more
The strong inflation has lifted the greenback to just shy of its three-month high, as focus sharpened on when central banks around the world will begin withdrawing pandemic-era stimulus.
That focus intensified on Wednesday after the Reserve Bank of New Zealand said it was ending bond…