U.S. Dollar Falls on Yellen Rates Pledge

The dollar extended its streak of declines to the longest since April before reports this week forecast to show orders for durable goods declined and a smaller gain in new home sales in the world’s largest economy.

The U.S. currency slipped against all except one of its 16 major peers after Federal Reserve Chair Janet Yellen last week said the central bank remains committed to low interest rates for a “considerable time.” Australia’s dollar jumped while New Zealand’s currency reached a six-week high after a report showed manufacturing in China improved more in June than analysts expected. The Canadian dollar gained.

“We have tended to digest better U.S. data and taken it on the chin,” said Alan Ruskin, the global head of Group of 10 foreign exchange at Deutsche Bank AG in New York. “After we heard from Yellen last week, we know what the Fed’s take is in terms of growth and inflation data. They certainly expect the economy to come back, but there’s some uncertainty, and there’s still a long way to go before tightening.”

Bloomberg

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