Dollar edges up as March Fed cut bets unwind, sterling trims losses after BoE

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Key Points

LONDON (Reuters) -The dollar rose slightly on Thursday after Federal Reserve Chair Jerome Powell pushed back against bets of early U.S. rate cuts, while sterling cut losses after the Bank of England said it would need more evidence of slowing inflation before easing...

That left the U.S. dollar index which measures the currency against a basket of six major peers including the euro, yen and British pound slightly higher at 103.63...

The dollar has been buoyed by U.S. economic data suggesting the Fed can wait longer before cutting interest rates, and Powell gave the currency another push overnight by calling a cut in March not the base case.. I dont think its likely the committee will reach a level of confidence by the time of the March meeting to ease policy, but thats to be seen, Powell said at a press conference after Fed officials left rates unchanged but dropped a longstanding reference to possible further hikes in borrowing costs...

The Fed outcome sent U.S. Treasury yields lower, reinforcing a rush to bonds driven by renewed jitters over regional U.S. banks after New York Community Bancorp crashed 37% on Wednesday to the lowest in more than two decades after posting a surprise loss..

The pound cut earlier losses and was last down 0.1% against the dollar at $1.2670 after the Bank of England reiterated that policy would need to stay restrictive for sufficiently long, while two policymakers voted to raise rates, pouring cold water on expectations for early interest rate cuts...

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