Dollar ends mixed as investors book profits

The greenback ended the day mixed against its peers on Thursday as investors booked profits on usd's recent uptrend. Elsewhere, euro fell in hectic post-ECB trading after the central bank hiked its rate by 75 bps as expected.  
  
Reuters reported Federal Reserve Chair Jerome Powell on Thursday said he did not see a conflict between the central bank's two congressionally mandated goals to foster both maximum employment and price stability, and he did not see a case for moving to a single mandate focused only on inflation. "In particular in the current moment, I don't see the two goals as in conflict at all because without price stability, we will not be able to achieve the kind of strong labor market that we want for a sustained period that benefits all, so I don't see a case for moving to a single mandate," Powell said in response to a question at an event hosted by the Cato Institute. Powell added that he believes both goals can be achieved in the "medium term."  
  
Versus the Japanese yen, dollar met renewed selling at 144.55 at Asian open and retreated to 143.47 at European open before ratcheting lower to an intra-day low at 143.33 ahead of New York open. The pair then pared its losses and rebounded strongly to 144.44 in New York morning before moving sideways.  
  
The single currency rebounded to 1.0014 at European open before retreating to 0.9977 in early European morning. The pair then rose to an intra-day high at 1.0030 ahead of ECB's decision before tumbling to session lows of 0.9932 in hectic post-ECB trading as ECB President Lagarde painted a concerned picture of the region's growth outlook. However, price later staged a strong recovery to 0.9999 near the close on broad-based retreat in usd.  
  
Sources from Reuters, the European Central Bank raised interest rates by an unprecedented 75 basis points on Thursday to tame runaway inflation, even as a recession is now increasingly likely as the bloc has lost access to vital Russian natural gas.

The ECB lifted its deposit rate to 0.75% from zero and raised the main refinancing rate to 1.25%, their highest level since 2011, as inflation is becoming increasingly broad and was at risk of getting entrenched. "Over the next several meetings the Governing Council expects to raise interest rates further to dampen demand and guard against the risk of a persistent upward shift in inflation expectations," the ECB said in a statement. The medium-term inflation in the euro zone may turn out to be higher than expected, President Christine Lagarde said on Thursday. Lagarde cited as factors in such a scenario a worsening of euro zone production capacity, further hikes in energy and food prices, a rise in inflation expectations above the ECB's target, or higher-than-anticipated wage rises. "However, if energy costs were to decline or demand were to weaken over the medium term, it would lower pressures on prices," Lagarde told the bank's post-policy meeting news conference.  
  
The British pound remained under pressure in Asia and retreated to 1.1476 in European morning. Despite jumping to session highs at 1.1562 on news of UK energy bill, price erased its gains and tumbled in tandem with euro to an intra-day low at 1.1461 in New York morning before staging a rebound to 1.1516 on usd's weakness.  
  
Further news from Reuters, Britain's finance ministry and the Bank of England will launch a 40 billion pound ($46 billion) scheme to ensure energy firms are not hit by a liquidity squeeze amid volatile markets, new Prime Minister Liz Truss said on Thursday. "I'm announcing today that with the Bank of England, we will set up a new scheme worth up to 40 billion (pounds) to ensure that firms operating in the wholesale energy markets have the liquidity they need to manage price volatility," Truss said. "This will stabilise the markets and decrease the likelihood that energy retailers need our support like they did last winter," she told parliament.  
  
  
Data to be released on Friday:  
  
New Zealand retail sales, China PPI, CPI, France industrial output, U.K. consumer inflation, Canada capacity utilization, employment change, unemployment rate, U.S. wholesale inventories and wholesale sales.