Dollar ticks up against yen in New York
The dollar came off nearly two-week lows and rose moderately on Tuesday after new US Federal Reserve chief Janet Yellen signalled there would no immediate deviation from the central bank's winding up of its massive bond purchases. "The clear message here is that the bar to doing less tapering is very high," said Shaun Osborne, chief foreign exchange strategist at TD Securities in Toronto. "It was what we expected from Yellen, though there may have been some hope she might be more dovish."
Copyright Reuters, 2014
In prepared remarks released ahead of her first appearance as Ben Bernanke's successor as Fed chair, Yellen said the US labour market recovery was "far from complete" and said the Fed expects to continue trimming policy stimulus. She emphasised continuity. After her comments were reported, the dollar jumped against the Japanese yen to as high as 102.68 yen from 102.33, but later fell back to 102.38, or up 0.1 percent for the day.
The US currency trimmed losses against the euro, initially moving to $1.3662 from $1.3678 before Yellen's written testimony was released. Later it was at $1.3649. The dollar index stood at 80.647 just before the Yellen news and traded at 80.641 in New York and was flat for the day after touching a low not seen since January 29. The Australian dollar rose to its highest point in almost a month, helped by an upbeat business survey and by buying from hedge funds, which have been betting against the Aussie for months and are now taking profits, traders said. The Aussie dollar last traded up 0.7 percent at US $0.9010.