Powell, bank runs & payrolls add to crosswinds in currencies

The dollar’s sharp rally after Fed Chair Powell’s hawkish testimony to Congress on Tuesday sent US interest rate expectations soaring now looks like ancient history. Instead, after unexpected turmoil in the US banking sector and today’s softer-than-expected US wage growth saw US rate expectations plunge, the dollar has given up much of its post-Powell gains and is ending the week lower against the franc and the yen.