The Dollar held firm against rivals in Thursday trading ahead of a key policy speech by Federal Reserve Chair Jerome Powell, as expectations mount the Fed will keep rates higher for longer.

The Dollar index, measuring the greenback against six peers, stayed mainly flat during Asian trading, around the previous day’s high of 106.63.

The US Dollar has been bolstered by a surge in US Treasury yields, which continued to rise on Thursday as markets bet Powell would likely be extra hawkish in his policy speech later today at the Economic Club of New York, getting underway at 12 noon ET.

However, recent Fed comments indicate policymakers are taking note of a considerable tightening in financial conditions, along with heightened uncertainty due to the tensions in the Middle East, Reuters reports.

“I think it highly likely the Fed Chair will reinforce the more cautious commentary heard from Fed speakers over the past week and half,” said IG Market Analyst Tony Sycamore.

Elsewhere, the Euro held steady at $1.0534 following overnight pressure from the Dollar, whilst Sterling was moving closer to a fortnight-low of $1.21235. 

In Australia, the Australian Dollar fell to a low of $0.6296 against the Dollar following the release of domestic employment data, which showed it increased less than forecast in September. At the time of writing, the Aussie stood at $0.63015. 

Whereas the New Zealand Dollar fell 0.5% to an 11-month low of $0.5825.

Furthermore, in Japan, the Yen marginally strengthened to 149.8 per Dollar, moving away from Wednesday’s two-week low of 149.94 but remaining near the 150 mark that may be a potential trigger for authorities to intervene, say traders.

In India, there was little change for the Rupee on Thursday, as the central bank likely sold US Dollars to prevent local currency weakness, the Reuters report adds.

The Rupee was trading at 83.26 against the Dollar at the time of writing, hardly any change from Wednesday’s close of 83.2575.