The dollar tumbled to a three-month low versus the yen in Asian Market opening trades today, as traders keyed on comments by Federal Reserve Chair Jerome Powell that interest rate hikes could be scaled back \"as soon as December.\" He added however that controlling inflation \"will require holding policy at a restrictive level for some time.\" \"Market participants appear to have interpreted Powell\'s speech as more dovish than hawkish,\" pushing down U.S. yields and the dollar. The reaction supports the markets\' apparent \'glass half full\' approach to the economic outlook at the moment.\" Markets are currently pricing 91% odds that the Fed slows to a 50-basis point rate increase on Dec. 14, and just 9% probability of another 75-basis point bump. The dollar index - which measures the currency against six major peers including the yen and euro - extended yesterday’s more than 1% drop today, dipping as low as 105.69. It tumbled 5.2% in November, its worst monthly showing since September 2010. In currencies today, the greenback was 0.70% lower at 136.80 yen. The euro rose 0.20% to $1.0425, and sterling added 0.23% to $1.2083. Aussie and kiwi have also been buoyed by signs the Chinese government will relent on its strangling zero COVID policy, following the announcement of an easing of curbs in places including Guangzhou and Zhengzhou, the site of a Foxconn iPhone factory. The Indian rupee opened stronger with a huge gap of 35 paise at 81.07/08 against its previous session’s close of 81.42/43 and is expected to trade between 81.00-81.40 band today.
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