U.S. Dollar Seeing Modest Strength Following Powell Remarks

The value of the U.S. dollar is currently seeing modest strength on Tuesday after fluctuating earlier in the trading day.

Currently, the U.S. dollar index is trading at 106.36 points up 0.15 points or 0.1 percent, but well off its highs of the session.

The greenback is trading at 154.67 yen compared to the 154.28 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0617 compared to yesterday's $1.0624.

The uptick by the dollar comes after Federal Reserve Chair Jerome Powell indicated in afternoon remarks that rates are likely to remain higher for longer amid a "lack of progress" toward reaching the central bank's inflation goal.

"Recent data shows solid growth and continued strength in the labor market, but also a lack of further progress so far this year on returning to our 2 percent inflation goal," Powell said during a moderated discussion with Bank of Canada Governor Tiff Macklem.

Fed officials, including Powell, have repeatedly stated they need "greater confidence" inflation is slowing before they consider cutting interest rates.

"The recent data have clearly not given us greater confidence, and instead indicate that it's likely to take longer than expected to achieve that confidence," Powell said. "That said, we think policy is well positioned to handle the risks that we face."