Dollar resumes gains ahead of Jerome Powell's statements

The US dollar rose against its peers on Friday, as profit-taking from a 5-week high stopped, to head for the third straight weekly gain, after the Fed meeting, which raised the chances of the near tightening of the US monetary policy, and ahead of Jerome Powell's statements later today.

The dollar index rose 0.3% to 93.33 points, after opening at 93.07 points, and hit a low at 93.04 points.

The US dollar index fell 0.4% yesterday, on profit-taking from a 5-week high of 93.52 points.

The US dollar has gained around 0.3% this week, on track for the third straight weekly gain, thanks to increased demand.

The Federal Reserve voted to maintain rates unchanged, but hinted at starting to reduce bond-buying soon.

Fed Chairman Jerome Powell said if the US economy continues to recover, the Fed may announce the date of reducing bond-buying next November.

The Federal Reserve projected to raise interest rates 3 times in 2023 and 3 more times in 2024, to reach 1.8% by the end of 2024.

The Federal Reserve is starting to cut monthly bonds purchases next November, leading to estimates of possible early rate hikes next year.  

At 14:00 GMT, Federal Reserve Chairman Jerome Powell will participate in an online event hosted by the US central bank.

Any hint about the near reduction of the bond-buying program will lift the US dollar against most currencies.