The dollar recouped some of Wednesday’s losses and Asian stocks struggled for direction after US markets had a volatile session amid speculation about the future of Federal Reserve Chair Jerome Powell.
The greenback gained versus all its Group-of-10 peers, resuming this month’s advance. The yen weakened to 148.41 per dollar as some currency strategists predicted a possible slide past 150.
The Aussie declined and government bonds fell as bets the central bank will cut rates in August firmed up.
Shares of Taiwan Semiconductor Manufacturing Co. dipped before earnings later Thursday. Equity-index futures for the S&P 500 fell 0.2%, following a gain in the US session after President Donald Trump played down the prospect he may soon fire Powell.
Treasuries dipped with yields on the 10-year rising one basis point to 4.47%. Speculation about Powell sent the dollar, US stocks and Treasury yields downward Wednesday before Trump’s clarification soothed market fears saying he’s “not planning on doing anything” to the Fed chair.
Trump wants lower interest rates, the cause of his unhappiness with Powell, just as New York Fed President John Williams defended the central bank’s restrictive stance saying it’s entirely appropriate.
