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U.S. dollar rises following Fed Powell's warning of prolonged recession

Xinhua News,NEW YORK
2020-05-14 05:21

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NEW YORK, May 13 (Xinhua) -- The U.S. dollar climbed in late trading on Wednesday as demand for the safe-haven currency increased after Federal Reserve Chairman Jerome Powell warned of prolonged recession amid the COVID-19 crisis.

The dollar index, which measures the greenback against six major peers, was up 0.31 percent at 100.2479.

In late New York trading, the euro decreased to 1.0815 U.S. dollars from 1.0854 dollars in the previous session, and the British pound decreased to 1.2218 dollars from 1.2280 U.S. dollars in the previous session. The Australian dollar decreased to 0.6440 U.S. dollar from 0.6492 dollar.

The U.S. dollar bought 106.99 Japanese yen, lower than 107.25 Japanese yen of the previous session. The U.S. dollar rose to 0.9723 Swiss franc from 0.9689 Swiss franc, and it increased to 1.4108 Canadian dollars from 1.4040 Canadian dollars.

Powell on Wednesday said the COVID-19 crisis raises "long-term concerns," warning that a prolonged recession and weak recovery could lead to an extended period of low productivity growth and stagnant incomes.

The central bank chief said that while the economic response has been "both timely and appropriately large," it may not be the final chapter, given that the path ahead is both "highly uncertain" and subject to "significant downside risks."
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