The US dollar continues to rise with support from Federal Reserve (Fed) Chairman Jerome Powell's statement on interest rates in Jackson Hole on Friday.
Powell said that the central bank will continue to raise interest rates to stop inflation from becoming a permanent feature of the US economy.
His remarks have spurred a dip in stock markets and major currencies, while the US dollar soared higher.
Here is the gist of Powell's follow-up statement on US monetary policy:
The Fed is likely to continue raising rates further in the coming months and keep them high for some time.
The Fed's responsibility to provide price stability is unconditional.
The restoration of price stability requires the Fed to maintain a tight policy stance for some time.
The Fed's focus is broader than a month or two of data, and it will continue to move forward until inflation falls closer to its long-term target of 2%.
Powell admitted that controlling inflation would have an 'impact' on American households and businesses, but it was a 'price' to be paid.
Powell warned that if it fails to restore price stability, it means that the 'pain' that will be borne will be greater.
"Without price stability, the economy is not going to work for anyone", asserted Powell in his speech in Jackson Hole last week.
Following on from that, it is clear that the Federal Reserve's commitment to fighting inflation is still 'burning' and some of the data published earlier were weak, remaining not to break the central bank's stance to continue tightening.
The impact on the currency market, the US dollar continued to surge higher reaching its latest 20-year high against most major currencies in the Asian session.
