SINGAPORE, Nov 3 (Reuters) – The dollar was on the front foot on Thursday after Federal Reserve Chair Jerome Powell signalled U.S. rates would likely rise further than expected, disappointing traders’ hopes for a change in tone, and shifting the focus to Friday’s jobs data.
The dollar hit a week-high of $0.9810 per euro in early Asia trade and is eying its best week in more than a month, although a Bank of England meeting and U.S. labour data loom before the close of trade in New York on Friday.
The Fed raised its benchmark funds rate by 75 basis points to 3.75-4% as widely expected. The dollar initially fell on hints in the Fed’s statement of smaller hikes ahead, but it was bid after Powell’s hawkish stance about the trajectory rates.
“Incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected,” Powell told reporters, adding: “It is very premature to be thinking…