Dollar struggles to recover from dovish Powell gut punch

Dollar struggles to recover from dovish Powell gut punch

Source: EODHD - https://www.investing.com/news/economy-news/dollar-struggles-to-recover-from-dovish-powell-gut-punch-4207998
Published: Aug 24, 2025 8:45 PM

By Kevin Buckland TOKYO (Reuters) -The U.S. dollar attempted on Monday to pull itself up from a four-week low on the euro after a dovish pivot from Federal Reserve Chair Jerome Powell sent it tumbling more than 1%. The greenback added 0.2% to $1.1699 per euro early in the Asian day, but remained not far from Friday’s low of $1.174225, a level not seen since July 28. It rose 0.1% to $1.3502 versus sterling following a 0.8% slide in the prior session. It added 0.4% to 147.46 yen, clawing back part of Friday’s 1% tumble. The risk-sensitive Australian dollar briefly leapt to a one-week high of $0.6523 on Monday before pulling back to trade slightly down at $0.6484. In the previous session, it su...

Market context: This update is relevant to AUD traders, with AUDUSD as the primary instrument to monitor for follow-through, trend continuation, or headline volatility.