Dollar stagnates as traders wait on Powell for policy hints

A U.S. Dollar banknote is seen in this illustration taken May 26, 2020. REUTERS/Dado Ruvic/Illustration

TOKYO, Jan 11 (Reuters) – The U.S. dollar hovered near the middle of its recent range against major peers on Tuesday as traders looked to incumbent Fed Chair Jerome Powell’s nomination hearing later in the day for new clues on the timing and pace of policy normalisation.

In his prepared opening remarks, released Monday, Powell will pledge to prevent high inflation from becoming “entrenched,” but will make no mention of plans for the path of monetary policy.

However, he will take questions from senators in his bid for a second four-year term. read more

The dollar index, which measures the currency against six counterparts, hovered around 95.93 early in the Asian session.

It hit a more than 16-month high of 96.938…