2024.03.0621:06:00UTC+00Dollar Loses Against Major Counterparts After Powell's Testimony

The U.S. dollar drifted lower against its major rivals on on Wednesday, weighed down by data showing a smaller than expected addition in private sector employment, and amid rising prospects of interest-rate cuts this year.

Federal Reserve Chair told the House Financial Services Committee today that it would be appropriate to begin lowering interest rates at "some point this year," if the economy evolves broadly as expected.

However, he added that the economic outlook "is uncertain" and the progress toward the central bank's 2% inflation objective "is not assured."

Powell said future interest rate decisions will be based on careful assessment of the incoming data, the evolving outlook, and the balance of risks.

A report released by payroll processor ADP showed private sector employment in the U.S. increased by 140,000 jobs in February after climbing by an upwardly revised 111,000 jobs in January. Economists had expected private sector employment to grow by 150,000 jobs compared to the addition of 107,000 jobs originally reported for the previous month.

A report released by the Labor Department showed job openings in the U.S. edged slightly lower in the month of January, dropping to 8.863 million, from a downwardly revised 8.889 million in December. Economists had expected job openings to dip to 8.900 million from the 9.026 million originally reported for the previous month.

The dollar index dropped to a low of 103.20 before recovering to 103.39, but still remained well below the flat line, losing about 0.4%.

Against the Euro, the dollar weakened to 1.0898 from 1.0859. Against Pound Sterling, the dollar was down at 1.2728, and against the Aussie it weakened to 0.6563.

The dollar eased against the Japanese currency, fetching 149.41 yen a unit, compared to 150.05 yen on Tuesday. The Swiss franc gained marginally against the greenback at CHF 0.8819, while the Loonie firmed to 1.3517 a unit of the U.S. currency.