The dollar closed lower on Thursday after the currency hit weekly lows not seen since 2022 amid rising oil prices and expectations of when the Federal Reserve will begin to reduce interest rates in the United States.

The currency closed the day at $3,775.64, a decrease of $36.49 compared to the Market Representative Rate, which was $3,812.13 for today. The maximum price reached by the dollar was $3,805.50, and the minimum recorded was $3,760, $52.13 less than today’s Market Representative Rate. There have been 1,951 transactions totaling US$1.427 billion.

Federal Reserve Chair Jerome Powell delivered a speech yesterday in which he stated that recent figures did not “materially change” the overall outlook they have been working with.

“The recent data, however, do not materially change the overall outlook, which remains one of solid growth, a strong but rebalancing labor market, and inflation moving toward 2% on a sometimes bumpy path,” he said in a speech at the Stanford Graduate School of Business.

The central banker reiterated his expectation that it would likely be appropriate to begin lowering rates “at some point this year.” The market expects the first rate cut to occur at the monetary policy meeting on June 11 and 12.

Powell’s statements led to positive movements in the world’s stock markets today, with Nasdaq 100 futures rising by 0.4%, and S&P 500 contracts advancing by 0.3%. Similarly, Treasury bonds also rose by two basis points.

Powell aims to initiate the process in terms of the rate cut cycle. We have seen some solid data in recent days, but I don’t think it’s unreasonable for them to cut in a fairly restrictive territory.

Additionally, there were expectations of cyclical dollar inflows due to factors such as the income tax payment season for large taxpayers.