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Dollar slides lower vs. rivals on Yellen remarks

Published 06/07/2016, 05:51 AM
Dollar loses ground vs. other majors after Yellen speech
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Investing.com - The dollar slid lower against the other major currencies on Tuesday, after Federal Reserve Chair Janet Yellen disappointed markets by giving no indication on the timing of future rate hikes.

USD/JPY was up 0.27% at 107.83.

Yellen indicated on Monday that the U.S. central bank won’t be raising interest rates until uncertainty over the economic outlook is resolved.

Yellen said she expects the economic recovery to continue but gave no indications on the timing of a next rate increase.

The remarks came after data on Friday showing that the U.S. economy added just 38,000 jobs last month, the smallest increase since September 2010.

The disappointing data ruled out chances for a June rate hike and prompted investors to push back expectations on the timing of the next rate hike until later this year.

EUR/USD edged up 0.11% to 1.1368, near Monday’s three-week highs of 1.1392.

The dollar was lower against the pound and the Swiss franc, with GBP/USD up 1.02% at 1.4592 and with USD/CHF sliding 0.47% to 0.9659.

The Australian and New Zealand dollars were stronger, with AUD/USD up 0.99% at one-month high of 0.7438 and with NZD/USD advancing 0.30% to 0.6941.

Earlier Tuesday, the Reserve Bank of Australia held its benchmark interest rate at 1.75%, in a widely expected move.

Elsewhere, USD/CAD fell 0.25% to 1.2785, the lowest since May 4.

The commodity-related loonie strengthened as oil prices continued to climb on Tuesday, helped by supply disruptions in Nigeria.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.27% at 93.78, the lowest since May 11.

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