Interest rate expectations for the US dollar are changing following a speech from Fed Chair Janet Yellen. Greenback is down almost across the board today as the fallout from yesterday’s remarks continues.
Yesterday, Janet Yellen, the chair of the Federal Reserve’s Federal Open Market Committee, remarked that interest rate hikes should be taken slowly. She spoke of caution in interest rate policy and seemed to indicate that the economic outlook points to a gradual increase being necessary. In recent weeks, at some of her colleagues have been more hawkish in tone. Yellen’s own caution seems to contradict previous remarks and is weighing on the US dollar.
The greenback is lower almost across the board today against its major counterparts. With the prospect of rate hikes being pushed further back, and new concerns about the US economic outlook, it is little surprise that the greenback is losing ground. With all these losses the dollar index is below the 95.000 level.
At 15:05 GMT the US dollar index is down to 94.971 from the open at 95.201. EUR/USD is higher, moving up to 1.1329 from the open at 1.1291. GBP/USD is also higher, moving up to 1.4434 from the open add 1.4388. USD/JPY is lower, falling to 112.5200 from the open at 112.6780.
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