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Dollar broadly higher vs. rivals, Yellen remarks support

Published 05/25/2015, 04:28 AM
© Reuters.  Dollar rises against counterparts in thin trade
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Investing.com - The dollar was broadly higher against a basket of other major currencies on Monday, as Federal Reserve Chair Janet Yellen's most recent remarks lent support to the greenback.

Trading volumes were expected to remain thin with a number of markets, including U.S. markets, closed for national holidays.

The greenback strengthened after Fed Chair Janet Yellen said on Friday that interest rates will be raised later in th year.

After that, future rate hikes will be small and gradual over the next several years, Yellen added.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.28% to 96.52.

EUR/USD declined 0.42% to 1.0966.

The single currency had strengthened after European Central Bank President Mario Draghi said at a conference in Portugal on Thursday that the ECB's policies have helped the euro zone's economy to recover.

However, concerns over a possible Greek default persisted after negotiations between Greek, French and German government leaders late last week ended without any sign of a breakthrough that will unlock bailout funds.

The pound was steady with GBP/USD at 1.5489.

The dollar was also little changed against the yen and the Swiss franc, with USD/JPY at 121.63 and with USD/CHF at 0.9436.

The Australian dollar was steady, with AUD/USD at 0.7827, while NZD/USD edged down 0.08% to 0.7306.

USD/CAD added 0.14% to trade at 1.2297.

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