U.S. Dollar Falls after Yellen Comments

The dollar fell against most major peers after Federal Reserve Chair Janet Yellen said the central bank has a “continuing commitment” to support the economic recovery.

The pound rose to the highest in more than four years after data yesterday showed the U.K unemployment rate fell to the lowest since 2009, adding to signs the economy is gaining traction. The Australian and New Zealand dollars rose following a report that China may issue policies to stabilize growth. The yen remained lower after its biggest decline in two weeks against the dollar before Japan’s Cabinet Office releases its monthly economic report.

“It looks like people are pretty keen to go short on the U.S. dollar again, and that’s having positive ramifications across a number of currencies today,” said Chris Weston, the chief market strategist at IG Ltd. in Melbourne. “Sterling looks reasonably strong. The U.K. continues to look relatively healthy compared with other regions.”

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.