The US dollar weakened after Federal Reserve Chair Janet Yellen gave a dovish speech at the Economic Club of New York on Tuesday.
Yellen gave a cautious tone with regards to rate hikes and highlighted external risks including low oil prices and slower growth abroad. Her remarks contrast those of several other Fed policy makers who spoke more hawkishly last week and who supported more rate hikes this year. Yellen’s stance left markets to rule out a rate hike in the April Fed meeting.
USDJPY fell right after Yellen spoke and reached 112.60 by the end of the US session and continued lower in Asia to a low of 112.40. The pair moved further away from a nearly two-week high of 113.805 touched on Tuesday.
The weaker dollar helped the euro ad the pound, as well as the Australian dollar.
EURUSD traded at $1.1293, after rising to as high as $1.1303 overnight, within sight of this month’s peak of $1.1342 set on March 17.
GBPUSD broke above $1.4400 overnight, pulling further away from a seven-year trough of $1.3836 set on February 29, as the market put aside “Brexit” jitters for now. It was last steady at $1.4374.
AUDUSD was back above the key $0.7600 level at $0.7624, within sight of an 8-1/2 month peak of $0.7681 set on March 18.
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