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Dollar drops vs. rivals on U.S. rate hike uncertainty

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Investing.com -

Investing.com - The dollar dropped against the other major currencies on Thursday, after Federal Reserve Chair Janet Yellen indicated that further rate hikes could be delayed.

USD/JPY tumbled 1.46% to 15-month lows 111.70.

In testimony before a congressional committee on Wednesday, Yellen said there are good reasons to believe the U.S. will stay on a path of moderate growth that will allow the Fed to pursue "gradual" adjustments to monetary policy.

But she also acknowledged risks facing the U.S. economy from tightening financial conditions driven by falling stock prices and uncertainty over China.

The dollar is now down almost 8% against the yen from the six-week high of 121.68 reached on January 29, following the Bank of Japan's shock decision to adopt negative interest rates.

EUR/USD added 0.18% to trade at 1.1313, not far from three-and-a-half month highs of 1.1354 hit earlier.

Elsewhere, the dollar was higher against the pound, with GBP/USD down 0.49% at 1.4452 and was lower against the Swiss franc, with USD/CHF sliding 0.36% to a four-month trough of 0.9699.

Meanwhile, the Australian and New Zealand dollars were weaker, with AUD/USD down 0.76% at 0.7042 and with NZD/USD dropping 0.49% to 0.6653.

USD/CAD gained 0.28% to trade at 1.3965 as oil prices fell to a three-week low below $28 a barrel on Thursday.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 0.21% at a four-month low of 95.64.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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