Dollar buoyant on tightening hopes, Asian stocks eye quarterly loss

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LONDON (Reuters) – The dollar hovered below the previous session’s one-year highs on Thursday on growing expectations the U.S. Federal Reserve will tighten policy in coming months, while Asian shares were headed for their worst quarter since the pandemic hit.

FILE PHOTO: Passersby wearing protective masks are reflected on an electronic board displaying stock prices outside a brokerage amid the coronavirus disease (COVID-19) outbreak, in Tokyo, Japan, September 29, 2021. REUTERS/Issei Kato

Resolving “tension” between high inflation and still-elevated unemployment is the most urgent issue facing the Federal Reserve right now, Fed Chair Jerome Powell said Wednesday, acknowledging the central bank’s two goals of stable prices and full employment are in potential conflict.

This focus on inflation helped the U.S. currency to end the quarter on a positive note.

“In the currency markets, there are expectations that the Fed will…

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