U.S. Dollar Extends Slide As Traders Pause Rate Cut Speculation

The U.S. dollar continued its early weakness against other major currencies in the Asian session on Thursday, as traders speculate a pause on rate cut following remarks by U.S. Federal Reserve Chair Jerome Powell.

Powell suggested rates are likely to remain higher for longer amid a "lack of progress" toward reaching the central bank's inflation goal. The Fed chief's remarks came as recent data showing sticky inflation along with continued economic strength have led to reduced expectations of a rate cut in June.

According to CME Group's FedWatch Tool, the chances of a 25-basis point rate cut in June have tumbled to 16.4 percent compared to 55.2 percent just a week ago.

Traders await the U.S. reports on weekly jobless claims, existing home sales and Philadelphia-area manufacturing activity due later in the day.

The safe-haven currency or the U.S. dollar traded lower against its major rivals on Wednesday.

In the Asian trading now, the U.S. dollar fell to a 6-day low of 1.0681 against the euro and a 2-day low of 153.96 against the yen, from Wednesday's closing quotes of 1.0671 and 154.38, respectively. If the greenback extends its downtrend, it is likely to find support around 1.09 against the euro and 148.00 against the yen.

Against the pound and the Swiss franc, the greenback edged down to 1.2472 and 0.9096 from yesterday's closing quotes of 1.2446 and 0.9106, respectively. The greenback may find support around 1.28 against the pound and 0.89 against the franc.

Against Australia, the New Zealand and the Canadian dollars, the greenback slid to 3-day lows of 0.6457, 0.5929 and 1.3750 from yesterday's closing quotes of 0.6434, 0.5915 and 1.3770, respectively. On the downside, 0.66 against the aussie, 0.61 against the kiwi and 1.35 against the loonie are seen as the next support levels for the greenback.

Looking ahead, Eurozone current account data for February and construction output figures for February are due to be released in the European session.

In the New York session, U.S. weekly jobless claims, Philadelphia-area manufacturing activity for April and U.S. existing homes sales for March are slated for release.