The dollar remained lower, putting the Bloomberg Dollar Spot Index on track for its lowest close in almost a month, as the Federal Reserve signaled it will keep interest rates near zero even after it ends bond purchases.
A Deutsche Bank AG gauge of currency market volatility fell by the most in more than a week after Fed Chair Janet Yellen said the U.S. central bank expects rates to stay low for a “considerable time” after the conclusion of monthly debt purchases, which were trimmed to $35 billion. New Zealand’s currency fell after growth in the first quarter from the previous three-month period missed economist expectations.
“Yellen basically said recent data haven’t been enough to confirm a pickup in the economic recovery,” said Ken Takahashi, assistant vice president for global markets at Sumitomo Mitsui Trust Bank Ltd. in New York. “Investors expect accommodative policy to continue for some time, meaning a weak dollar and strength in high-yielding currencies.”