An under pressure U.S. dollar handed back part of its month-end bounce on Tuesday, as investors reckoned on more monetary easing by the Federal Reserve and a gathering recovery elsewhere.
Gold rose 1% on Tuesday, following a sharp slide in the last session, as focus returned to the likelihood of more monetary stimulus to revive a global economy still reeling from the Covid-19 pandemic.
The dollar was steady on Tuesday and the yen stayed near three-weeks lows, as investors remained optimistic about progress toward a COVID-19 vaccine and the currency markets digested Monday's big moves.
The Federal Reserve ought to stop raising interest rates until it gets a clearer picture of where the economy is headed, Robert Kaplan, president of the central bank's Dallas district, said in an interview Thursday.
The number of interest rate hikes next year has been the subject of debate on Wall Street as concerns about an economic slowdown continue to slam the stock market.
Stocks fell on Wednesday as shares of Apple rolled over and fell briefly into a bear market. A decline in bank shares also pressured the broader market.
The Federal Reserve needs to raise interest rates about four more times before it reaches an equilibrium level, Dallas Fed President Robert Kaplan says.
Inflation is nearing the Fed's 2 percent goal while not accelerating enough to suggest the economy is overheating, Dallas Federal Reserve President Robert Kaplan said.