The euro hit session lows against the dollar on Tuesday, after Federal Reserve Chair Janet Yellen said there’s no need to raise interest rates for the next few months. Earlier, the euro turned flat after the Eurogroup approved Greece’s reform plan, which was required for Athens to receive a four-month extension on its bailout.
The six-page proposal pushed back on campaign promises from Greece’s new government to halt privatizations, boost welfare spending and raise the minimum wage, and pledged to consult partners before key reforms and keep them budget-neutral.
In New York trading, the single currency hit a U.S. session low of $1.2950. The Fed chair described how the central bank’s rate-setting policy committee will likely proceed in coming months—an effort to increase the Fed’s flexibility and mute any potential market reaction as the central bank approaches its liftoff date for rate increases.