The U.S. dollar is falling against major currencies during trading on Wednesday. Traders continue to follow the statistical data from the U.S., including the dynamics of consumer prices. The U.S. Department of Labor will release data on the dynamics of consumer prices in April on Wednesday at 15:30 Moscow time.

Head of the Federal Reserve Bank (FRB) of New York John Williams during a speech in Germany called inflation reduction the main task of the Federal Reserve System (FRS) of the U.S., at the same time he noted that he does not believe that the tightening of monetary policy will necessarily lead to recession.

As reported, the Fed raised the rate at the end of the meeting on May 3-4 by 50 basis points (bp), to 0.75-1% per annum. The rate was raised by 50 bps for the first time since 2000.

At a press conference following the meeting, Fed Chairman Jerome Powell said that the Fed will consider raising the rate by 50 bps at the next few meetings, but a rate hike of 75 bps at once is not being actively discussed.

In addition, market participants are concerned about another wave of rising coronavirus incidence in China, which has already led to the introduction of a number of strict lockdowns in some regions of the country. China adheres to a “zero tolerance” policy for COVID-19. This means limiting the spread of the virus through lockdowns and mandatory quarantine for those who have come into contact with infected individuals.

The euro-dollar exchange rate was up 0.17 percent to $1.0547 as of 8:53 a.m. Moscow time, compared with $1.0529 at Tuesday’s market close. The dollar declined 0.09% to 130.33 yen against 130.45 yen the previous day against the Japanese currency. The pound sterling rose 0.15% to $1.2334 from $1.2316.

Calculated ICE index, showing the dynamics of the dollar against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona), loses 0.14%, the broader WSJ Dollar Index 0.17%.