Investing.com - The dollar pushed higher against the other major currencies on Wednesday, after Federal Reserve Chair Janet Yellen said conditions in the U.S. would allow it to pursue "gradual" adjustments to monetary policy.
USD/JPY slipped 0.11% to 115.05, still close to Tuesday’s lows of 114.20, the weakest level since November 2014.
In testimony to Congress, Yellen said the US economy faces a number of global threats that could derail growth and compel the Fed to slow the pace of future interest rate hikes.
While the Fed expects to raise interest rates gradually, it is not on any pre-set course, Yellen said, adding that the central bank would likely move slower "if the economy were to disappoint".
Meanwhile, demand for the yen continued to be underpinned as Japan’s Nikkei fell overnight, amid persistent fears over the health of the global economy and the euro zone financial sector.
Global stocks have sold off sharply this week, hit by a combination of fears over slowing global growth, more widespread use of negative interest rates and a prolonged depression in the commodity sector.
EUR/USD tumbled 0.97% to trade at 1.1180.
Elsewhere, the dollar was steady against the pound, with GBP/USD at 1.4475 and moved higher against the Swiss franc, with USD/CHF up 0.80% at 0.9805.
The U.K. Office for National Statistics reported on Wednesday that manufacturing production decreased by 0.2% in December, disappointing expectations for a gain of 0.1% and following a decline of 0.3% a month earlier.
On an annualized basis, manufacturing production fell at rate of 1.7%, worse than estimates for a decline of 1.4%, after declining at a rate of 1.2% in November.
The report also showed that industrial production fell 1.1%, compared to forecasts for a drop of 0.1% and following a decline of 0.8% in the preceding month.
Meanwhile, the Australian and New Zealand dollars were stronger, with AUD/USD up 0.37% at 0.7097 and with NZD/USD rising 0.29% to 0.6654.
Earlier Wednesday, the Westpac Banking Corporation said its consumer sentiment index for Australia rose by 4.2% in February, compared to expectations for a 1.0% decline, after a 3.5% drop the previous month.
USD/CAD edged up 0.18% to trade at 1.3891.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.62% at 96.62, after rising to 96.33 earlier in the session.