Adding to pressure on the dollar, Federal Reserve Governor Lael Brainard said on Tuesday that inflation was “well short” of target, so the Fed should be cautious about raising U.S. interest rates.
Analysts said the comments cast more doubt over the likelihood of another rate hike this year. Brainard, a permanent voting member on the Fed’s monetary policy committee, has in the past convinced colleagues to delay tightening.
“We all know she’s really dovish…but her comments were pretty explicit regarding inflation. She didn’t mince her words,” said Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore, referring to Brainard’s remarks.