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Forex - Dollar drops to 3-week lows after Yellen remarks

Published 25/08/2017, 15:50
Dollar hits 3-week trough vs. rivals on Yellen speech
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Investing.com - The dollar dropped to three-week lows against the other major currencies on Friday, after Federal Reserve chair Janet Yellen made no mention of monetary policy or the economy in her speech at Jackson Hole.

Although Yellen was not expected to give any details on future policy moves, some investors were still hoping for clues.

The greenback was also under pressure after Dallas Federal Reserve Bank President Robert Kaplan repeated on Friday his call for patience on raising interest rates any further.

The comments came after the U.S. Commerce Department said durable goods orders fell more than forecast in July, although the core reading rose slightly more than expected.

EUR/USD climbed 0.56% to 1.1866 as market participants were now looking ahead to European Central Bank President Mario Draghi's speech in Jackson Hole for any potential indications on when the ECB plans to begin tapering its monthly purchase program.

Data earlier Friday showed that the German Ifo business climate index fell to only 115.9 in August from 116.0 the previous month. Analysts had expected a drop to 115.5.

The yen and the Swiss franc turned higher, with USD/JPY down 0.28% to 109.25 and with USD/CHF sliding 0.75% to 0.9582.

Elsewhere, GBP/USD advanced 0.62% to 1.2881, pulling further away from the previous session's two-month low of 1.2796.

The Australian and New Zealand dollars were stronger, with AUD/USD up 0.57% at 0.7949 and with NZD/USD gaining 0.61% to 0.7254.

Meanwhile, USD/CAD slipped 0.25% to 1.2489, the lowest since August 1.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.54%at a three-week low of 92.73 by 10:50 a.m. ET (14:50 GMT), off session highs of 93.37.

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