Dollar hobbled by dovish Powell, debt ceiling setback

Tokyo, May 22 (BNA): The dollar continued its decline against the yen and the euro on Monday after a sudden collapse in US debt ceiling negotiations and after Federal Reserve Chairman Jerome Powell signaled his preference for slow rate hikes.

The greenback fell 0.15% to 137.725 yen to start the week, after snapping a six-day winning streak on Friday, pulling back from a six-month high, Reuters reported.

The euro rose 0.14% to $1.08205, extending Friday’s rebound from a seven-week low.

The Australian dollar was flat at $0.6652.

Its New Zealand counterpart advanced 0.16% to $0.62855, with traders ramping up bets to 1 in 3 for a half-point hike by the Reserve Bank on Wednesday.

The Chinese yuan weakened to 7.0359 against the dollar in offshore trade, creeping back towards a six-month low on Friday at 7.0750.

ZHB