USA dollar declines amid Fed Chair Powell's speech

Traders work on the floor of the NYSE in New York

Traders work on the floor of the New York Stock Exchange in New York U.S

Gold usually moves in opposite directions with the us dollar, which means if the dollar goes down, gold futures will rise as gold, priced in USA dollar, becomes less expensive for investors using other currencies.

North American stock markets ended the week in positive territory as the Federal Reserve chairman's suggestion about measured interest rate hikes gave investors comfort and pushed the S&P 500 and the Nasdaq composite to touch all-time highs. At press time, it is trading at $1,205 - up 1.68 percent on the day, having hit an 11-day high of $1,208.61 post-Powell's speech.

Oil prices surged, rising nearly 2 percent, on signs that Iran sanctions may limit global supply and that a trade war may not curb China's appetite for US crude. It was still up about 1 percent on the week.

The Russell 2000 Index gained 0.5 percent to a record.

The Australian dollar dipped 0.05 percent to $0.7245. Japan's Nikkei climbed 0.65 percent, lifted by a weaker yen.

Almost 8 out of 10 business economists at major corporations said the Fed's current actions are "about right", according to a survey of 251 economists earlier this month by the National Association for Business Economics.

The U.S. dollar index, which measures the buck against six rivals, fell 0.52 percent to 95.15 as of 1925 GMT.

Shares of industrial giants Caterpillar Inc CAT.N and Boeing Co BA.N, bellwethers of trade confidence, were among the biggest drags on the Dow .DJI , which lost about 0.3 percent.

The USD/CAD fell 0.22 percent in the last five days.

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The DPRK is an acronym for the North's official name, the Democratic People's Republic of Korea. The British Embassy previewed his speech on Monday.

Speaking to an annual conference of central bankers in Jackson Hole, Wyoming, Powell said the Fed recognizes the need to strike a careful balance between its mandates of maximizing employment and keeping price increases stable.

Policymakers at the central bank have already voted to hike the benchmark federal funds rate twice this year, and are expected to do so twice more in 2018, bringing the yearly total to four. "I'm not thrilled", Trump said in an interview with Reuters.

"Any mention of recent turbulence in the emerging markets may also provide the risk asset markets with some relief".

President TrumpDonald John TrumpAustralian prime minister Malcolm Turnbull ousted by party rivals CNN's Cuomo clashes with Kellyanne Conway over Cohen hush-money payments Lawmaker who pushed to impeach Nixon: Trump "systematically" abusing power MORE has ripped the Fed and Powell for raising interest rates, which he says will needlessly stifle economic growth and hurt the U.S.in trade negotiations.

Powell sketched a positive picture of the US economy and said the Fed's incremental approach to raising rates has so far succeeded.

In his highly anticipated Friday address on the heels of a record-setting stock market week, Powell noted that while the USA economy is strong, the Fed is working to find a balance between the "shoals of overheating and premature tightening".

The US Dollar (via the DXY Index) is closing in on its lows of the week established on Wednesday as traders are heading into the weekend disappointed by what they've heard so far at the Jackson Hole Economic Policy Symposium.

The greenback extended its overnight surge to touch a two-week high of 111.49 yen.

The pan-European Stoxx Europe 600 index eased 0.2 percent.

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