Dollar Slumps 1% After Powell Touts Case for Interest-Rate Cuts
- Fed chair in Jackson Hole cements September rate cut
- Yen, Australian and New Zealand dollars see large gains
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The dollar plunged after Federal Reserve Chair Jerome Powell affirmed expectations that the central bank will cut interest rates next month, reducing the appeal of fixed-income assets in the US.
A Bloomberg gauge of the greenback fell 1% to its weakest mark since January and Treasury yields tumbled after Powell’s remarks at the Kansas City Fed’s annual conference in Jackson Hole, Wyoming. The dollar gauge sank for a fourth straight week, the longest such streak in more than a year.