As the Federal Reserve plays a crucial role in markets, its uncertainty regarding potential interest rate hikes adds intrigue. Currently, everyone awaits Fed Chairman Jerome Powell's speech tomorrow, since he may clarify the central bank's stance on the future monetary policy.
Of particular interest will be the recent shift in the statements of Fed representatives toward a more dovish position, indicating a more cautious approach to interest rate increases. That will force dollar bulls into a defensive position. The further tightening of the Fed's policy will support the rise in US bond yields and bolster the dollar.
The table below shows the percentage change in the exchange rate of dollar (USD) against major currencies. It showed the largest gains against the New Zealand dollar.
