During today’s trading, the US dollar continues to appreciate against the euro and yen. Calculated by ICE index, showing the dynamics of the dollar against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona), adds 0.02%, the broader WSJ Dollar Index 0.25%.

As of 9:39 a.m. Moscow time, the euro was yielding $1.0517, compared with $1.0542 at Thursday’s market close.

Paired with the Japanese currency, the dollar rose to 130.56 yen against 130.20 yen the previous day.

The pound sterling fell to $1.2348 from $1.2362 by 9:39 Moscow time.

Yesterday, the U.S. currency gained 0.8% both in pairing with the euro and against the yen, adding 2.2% to the pound.

Traders somewhat tempered expectations regarding the pace of policy tightening by the Federal Reserve System (FRS) after the statements of the head of the Fed Jerome Powell, made by him at a press conference on the results of the meeting of the U.S. Central Bank held on May 3-4. 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 the press conference following the meeting, Powell said that the Fed would consider a 50 bps rate hike at the next few meetings, but a 75 bps rate hike was not actively being discussed.

Despite Powell saying that a 75bp rate hike was not under consideration, the tone of his statements was quite hawkish, said IGM analyst Bruce Clark, as quoted by Dow Jones. The dollar reacted with an immediate decline to Powell’s statements, but resumed growth the next day.

Unfavorable economic news from other countries, including China and the U.K., is supporting demand for the dollar as a safe haven asset, Clark notes.

“The U.S. seems to be the cleanest of the dirty shirts right now,” Clark says. – People get scared when the dollar strengthens too quickly. This is a signal of deteriorating liquidity around the world, which can’t be considered good news for risk assets.”