The U.S. dollar fell against a basket of currencies on Wednesday after Federal Reserve Chairman Jerome Powell’s comments about the central bank’s ongoing battle to reduce inflation were less bullish than market expectations.

Powell told U.S. lawmakers that the war on inflation still has a “long way to go” and that despite a pause on raising interest rates at the most recent meeting of the Monetary Policy Committee, officials agree on the need to raise the cost of borrowing. .

Noting that inflation is still far from the Fed’s target level, Powell said it would make sense to raise rates at a more modest pace.

Price movements

The dollar index, which measures the U.S. currency’s performance against a basket of six currencies, fell 0.20 percent to 102.31 on the day, as Powell testified before the House Finance Committee.

The euro was up 0.35 percent at $1.0956.

And the U.S. currency rose 0.4 percent to 142.015 yen against the yen, with the Japanese currency under pressure after the Bank of Japan governor on Wednesday reiterated the central bank’s stance of sticking to ultra-easy monetary policy.

The British pound fell 0.17% to $1.2741, its lowest level in a week.

The Australian dollar fell 0.07 percent to $0.6782, on course for a fourth consecutive day of losses.