By Gina Lee
Investing.com – The dollar was up on Wednesday morning in Asia, with investors expecting a speech from the U.S. Federal Reserve Chairman Jerome Powell later in the day.
Whoever tracks the greenback against a basket of other currencies slipped 0.04% to 99.998 at. 11:40 pm ET (4:40 pm GMT).
Powell is likely to resist calls for negative rates, a hot issue since the U.S. money market instruments began pricing in a chance of negative rates last week.
But drop the U.S. Consumer prices, which fell 0.8% in April, raised the possibility of deflation as the economy plunges deeper into recession, prompting the debate over political reactions and putting pressure on the Fed to do more.
U.S. President Donald Trump again pressured the Federal Reserve to adopt negative interest rates on Tuesday.
“I would advise against negative prices. Japan has done it, but the perception here is that it was not so good, ”Hiroyuki Ueno, senior strategist at Sumitomo Mitsui (NYSE 🙂 Trust Asset Management, told Bloomberg.
“But what’s troubling is that Trump is talking about them now. Looking at past examples, the Fed has gradually done what Trump wanted quite often. ”
The pair rose 0.07% to 107.21.
The couple knew its losses from Tuesday, gaining 0.08% to 0.6474 in the wake of a newspaper report that China banned some Australian meat imports. AUD cut its losses as Australia’s Commerce Minister played out the issue as a technicality.
Meanwhile, the pair slips 1% to 0.6015.
The pair rose 0.13% to 7.0906, and the pair rose 0.09% to 1.2221.
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