Jerome Powell-led Federal Reserve could be US dollar-positive in long term

Analysts say this will be a bright spot for a dollar that has struggled for most of the year

Federal Reserve Board Governor Jerome Powell, who has voted to support Fed Chair Janet Yellen’s low interest rate policies, may not be as negative for the US dollar in the long term as originally thought, investors and analysts said on Thursday.

Earlier on Thursday President Donald Trump tapped Fed Governor Jerome Powell to become head of the US central bank, breaking with precedent by denying Janet Yellen a second term but signalling a continuation of her cautious monetary policies.

Financial markets have typically viewed Powell as bearish for the dollar because he has supported gradual interest rate rises, rather than more aggressive