US Dollar hits six week low, commodity currencies surge

The dollar hits a six week low on Tuesday while commodity currencies hit multi-year highs. All investors in the US were eager to know how U.S. Federal Reserve chief Jerome Powell might respond to resurgent inflation expectations.

Canadian, Australian and New Zealand dollars have hit their highest in nearly three years as there has been a rise in prices for the expensive to the least expensive commodities.

The investors are expecting Powell to give some consolation that the Fed will endure rising inflation without racing to raise rates. That may quiet security markets and ultimately burden the dollar, they said.

The US dollar hit its lowest since mid-January, 89.941 on Tuesday. The Australian dollar hit $0.7934, its highest since 2018. The Euro stands at $1.2167 with a gain while Sterling is at $1.4072.

The major losses of the year were seen by the Japanese Yen that stands at 105.02 per dollar.