U.S. Dollar Declines Before Yellen Testifies

The dollar remained lower following weekly declines against major peers, with Federal Reserve Chair Janet Yellen due to testify to lawmakers this week amid speculation the U.S. central bank will keep rates near zero.

Futures traders see about a 7 percent chance the Federal Open Market Committee will raise benchmark borrowing costs in December. The greenback ended little changed on May 2 even after government data showed employers boosted payrolls in April by the most in two years and the jobless rate plunged. Australia’s dollar was little changed ahead of reports today on domestic building approvals and China’s manufacturing.

“I expect it to remain relatively weak in the near term,” said Thomas Averill, a managing director in Sydney at Rochford Capital, a currency and rates risk-management company, referring to the dollar. “On the horizon there is a longer-term bull trend coming, but until you see a telegraphed series of rate rises from the FOMC, I don’t think you are going to see that U.S. dollar recovery.”


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