The dollar slipped Friday after Federal Reserve Chairman Jerome Powell gave little indication the central bank would accelerate its pace of rate increases in coming months.
The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently down 0.5% at 89.30.
At a symposium of central bankers in Jackson Hole, Wyo., Mr. Powell defended the Fed’s strategy of gradually raising interest rates, pushing back against criticisms that the central bank is moving either too quickly or too slowly, jeopardizing the economy’s expansion.
Expectations that rates will rise faster then anticipated tend to boost the dollar by making the U.S. currency more attractive to yield-seeking investors.
In emerging markets, the dollar was recently down 1.2% against the Turkish lira and lost 1.3% against the Russian ruble.
Write to Ira Iosebashvili at [email protected]