NEW YORK, Dec 1 (Bernama) -- The US dollar fell in late trading on Wednesday after Federal Reserve Chairman Jerome Powell indicated smaller rate hikes ahead, reported Xinhua.
Speaking at the Brookings Institution on Wednesday, Powell signalled the US central bank may slow the pace of interest-rate increases as soon as the December meeting, while stressing that borrowing costs will need to keep rising and remain restrictive for some time to beat inflation.
The dollar index, which measures the greenback against six major peers, decreased 0.82 per cent to 105.9470.
In late New York trading, the euro rose to US$1.0414 from US$1.0331 in the previous session, and the British pound was up to US$1.2055 from US$1.1950 in the previous session.
The US dollar bought 137.99 Japanese yen, lower than 138.65 Japanese yen of the previous session.
The US dollar was down to 0.9455 Swiss francs from 0.9537 Swiss francs, and it was down to 1.3443 Canadian dollars from 1.3585 Canadian dollars. The US dollar was down to 10.5042 Swedish Kronor from 10.5868 Swedish Kronor.
In Chicago, gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday as investors reacted to Fed Chair Jerome Powell's speech.
The most active gold contract for February delivery fell US$3.8, or 0.22 per cent, to close at US$1,759.9 per ounce.
Speaking at the Brookings Institution on Wednesday, Federal Reserve Chairman Jerome Powell signaled that the Fed is not yet done with containing inflation, but the pace of interest rate increases can slow as soon as the December meeting. He noted the Fed has "not seen clear progress on slowing inflation," suggesting more rate hikes to come. This puts pressure on gold.
Gold ended 7.3 per cent higher for November, the first monthly gain since March. Silver for March delivery rose 34.5 cents, or 1.61 per cent, to close at US$21.781 per ounce. Platinum for January delivery rose US$30.7, or 3.04 per cent, to close at US$1,039.3 per ounce.
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