By Peter Nurse
Investing.com – The dollar edged higher in early European trade Wednesday, stabilizing after weakness overnight following commentary from Federal Reserve Chair Jerome Powell that again indicated the central bank will take time to tighten monetary policy.
At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 91.865, after dropping as low as 91.672 late Tuesday.
USD/JPY was up 0.2% at 110.81, EUR/USD dropped 0.2% to 1.1919, after rebounding from as low as $1.18470 at the end of last week, GBP/USD fell 0.1% to 1.3931, while the risk-sensitive AUD/USD was down 0.1% at 0.7545.
Powell stuck largely to his previous script when addressing lawmakers on Tuesday, acknowledging that the price increases seen in the economy recently had been bigger than expected but repeating that they will probably wane. Powell was again upbeat on the outlook for the labor market however.