U.S. Dollar Higher Before Yellen Speaks

The dollar was near a two-week high against a basket of its major peers before Federal Reserve Chair Janet Yellen speaks today amid prospects the central bank will continue to scale down its bond purchases.

Australia’s currency dropped after business investment fell the most in four years. The greenback held its biggest jump this month against the euro before data on joblessness and durable goods that are expected to add to signs the U.S. economy will weather stimulus reductions after a report yesterday showed new-home sales unexpectedly increased.

“The dollar may advance further if upcoming data turn out to be strong,” said Yasuhiro Kaizaki, the New York-based vice president for global markets at Sumitomo Mitsui Trust Bank Ltd. “The market will listen closely to whether Yellen mentions the recent weakness in economic data.”

Bloomberg

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