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Fed Chair Powell emphasizes balance between jobs and

inflation

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Euro falls after rising for two straight sessions

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NZ dollar drops after appointment of new central bank

chief

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Yen lower as traders assess candidates for Japanese PM

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US dollar index rises

(Updates prices throughout, headline, paragraph 1, adds fresh

analyst quote)

By Chibuike Oguh and Canan Sevgili

NEW YORK/LONDON, Sept 24 (Reuters) - The U.S. dollar

gained against the yen, Swiss franc and euro on Wednesday, after

Federal Reserve Chair Jerome Powell struck a cautious tone on

further easing overnight, while the New Zealand dollar eased

following the appointment of a new central bank chief.

The dollar strengthened 0.46% to 0.795 against the Swiss

franc, on track to snap two consecutive sessions of

losses.

The euro was lower against the dollar after German business

morale fell unexpectedly in September. It was last down 0.67% at

$1.1736 after rising for the last two sessions.

Sterling declined 0.68% to $1.3431. It was steady against the

euro, at 87.34 pence.

INFLATION AND JOBS MARKET IN FOCUS

"The dollar is a little firmer broadly against most of the

G10 although it is still choppy and range bound," said Marvin

Loh, senior global market strategist at State Street in Boston.

"Based on our flows and holdings data, the dollar is still

very underweight kind of within the real money community so I

think it's due for a period of consolidation and that's

ultimately what it's doing."

Powell maintained a cautious tone on Tuesday, saying the Fed

needed to continue balancing the competing risks of high

inflation and a weakening job market in coming rate decisions.

Markets are expecting quarter-point rate cuts at the

remaining two Fed meetings this year and another in the first

quarter of 2026, in line with the central bank's guidance after

last week's meeting.

This week's U.S. data will be in focus, particularly

Friday's release of the personal consumption expenditures price

index, a key input for shaping expectations on the Fed's next

policy steps.

"We are still data point-to-point with regard to the Fed,

and that's going to be the catalyst for rates and the dollar in

terms of determining how aggressive or hawkish the market starts

to view the Fed," Loh added.

The U.S. dollar index, which measures the currency

against six major rivals, added 0.65% at 97.87, attempting to

claw back ground after two straight losing sessions.

San Francisco Fed President Mary Daly will speak later in

the day.

NEW ZEALAND CENTRAL BANK GOVERNOR

Candidates for the next leader of Japan's ruling Liberal

Democratic Party answered journalists' questions on Wednesday.

Frontrunner Sanae Takaichi, a fiscal and monetary dove, said

monetary policy was up to the Bank of Japan but higher rates

could affect mortgages and corporate investment.

Against the yen, the dollar added 0.75% to 148.73 yen

, hitting its highest in three weeks and set to snap

three straight sessions of losses.

New Zealand's dollar traded down 0.72% at $0.5814

after Swedish central banker Anna Breman was named as the next

Reserve Bank governor, becoming the first woman in the role.

The Australian dollar weakened 0.17% versus the

greenback to $0.6587. Data showed that inflation climbed more

than expected to 3% in August, less than a week before the

Reserve Bank's next policy meeting.