NEW YORK: The US dollar edged down against a basket of currencies on Wednesday after Federal Reserve Chair Jerome Powell’s comments on the central bank’s ongoing fight to lower inflation failed to live up to the more hawkish market expectations. Chair Powell on Wednesday told lawmakers that the fight against inflation still “has a long way to go” and despite a recent pause in rate hikes officials were in agreement borrowing costs would likely still need to move higher.

While noting that inflation remains very far from the Fed’s target, Powell said it may make sense to move rates higher, at more moderate pace.

The pound was last down 0.17% at $1.2741, a near 1-week low.

The Australian dollar was down 0.07 % at $ 0.6782 , on pace for a 4th straight day of losses, weighed down by the release on Tuesday of the minutes of the Reserve Bank of Australia’s June policy meeting, where guidance on yet further increases was absent, a sign that markets took as dovish.

The Aussie, which is very sensitive to Chinese economic data, has also come under pressure due to lacklustre stimulus measures from Beijing. Bitcoin extended overnight gains to breach $29,000 for the first time since late May, helped by the launch of a new crypto exchange backed by Fidelity, Citadel Securities and Charles Schwab. It was last up 5.55% at $29,887.