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Dollar index pushes lower, hits 5-month trough

Published 03/30/2016, 10:54 AM
© Reuters.  Dollar hits 5-month lows vs. rivals as Yellen remarks still weigh
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Investing.com - The dollar fell to five-month lows against the other major currencies on Wednesday, even after data showed that U.S. non-farm private employment rose more-than-expected this month, as comments by Federal Reserve Chair Janet Yellen continued to weigh.

EUR/USD was up 0.57% at 1.1356.

Payroll processing firm ADP said non-farm private employment rose by 200,000 last month, surpassing expectations for an increase of 194,000.

The economy created 205,000 jobs in February, whose figure was downwardly revised from a previously reported increase of 214,000.

In a speech at the Economic Club of New York late Tuesday, Yellen said global risks to the U.S. economy, including low oil prices and uncertainty over China justified taking a cautious approach to tightening monetary policy.

The comments contrasted with recent remarks by some Fed officials who indicated that the bank could act as soon as next month to raise interest rates.

USD/JPY slipped 0.20% to trade at 112.47.

Earlier Wednesday, data showed that Japan’s factory output posted the largest drop in February since a massive earthquake and tsunami in 2011 hit the supply chain, adding to fears that the economy is at risk of falling into a recession.

The dollar was lower against the pound and the Swiss franc, with GBP/USD up 0.46% at 1.4454 and with USD/CHF declining 0.74% to 0.9594.

The KOF Economic Research Agency said earlier that its economic barometer fell to 102.5 in February from 102.6 the previous month, whose figure was revised up from 102.4.

Analysts had expected the KOF economic barometer to fall to 101.9 last month.

Meanwhile, the Australian and New Zealand dollars were stronger, with AUD/USD up 0.98% at 0.7702 and with NZD/USD rallying 1.37% to a five-month high of 0.6942.

USD/CAD tumbled 1.13% to trade at 1.2923.

The commodity currencies found support as oil prices rebounded on a smaller than anticipated rise in crude oil stockpiles last week.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.57% at 94.63, the lowest since October 16.

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