(RTTNews) - The U.S. dollar gained against its major rivals on Friday, riding on Fed Chair Jerome Powell's remarks that the central bank would continue to keep interest rates higher to tame inflation.
Speaking at the Jackson Hole Economic Symposium, Powell said the Fed would keep raising rates until there is confidence that the job is done.
Powell said the central bank's efforts to combat inflation will cause "some pain." He reiterated the Fed's resolve to bring inflation back to its 2% target, declaring that the "economy does not work for anyone" without price stability, and added that the central bank would use its tools "forcefully" to bring demand and supply into better balance.
Data released by the Commerce Department showed the annual rate of core consumer price growth slowed to 4.6% in July from 4.8% in June. Economists had expected the pace of growth to slow to 4.7%.
Revised data released by the University of Michigan today showed consumer sentiment in the U.S. improved by much more than previously estimated in the month of August.
The report showed the consumer sentiment index for August was upwardly revised to 58.2 from the previously reported 55.1. Economists had expected the index to be upwardly revised to 55.2.
With the much bigger than expected upward revision, the consumer sentiment index is well above the final July reading of 51.5.
The dollar index, which had dropped to 107.59 at one state, rallied to 108.87 later, gaining nearly 0.4%.
Against the Euro, the dollar is trading at 0.9970, up marginally from the previous close.
The dollar has firmed to 1.1740 against Pound Sterling, gaining from 1.1835. Against the Japanese currency, the dollar has strengthened to 137.47 yen from 136.50.
The dollar is up sharply against the Aussie at 0.6892, firming from 0.6979.
The Swiss franc has weakened to 0.9656 a dollar, from 0.9634, while the Loonie has drifted down nearly 0.9% against the dollar at C$1.3039.
