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Dollar remains close to one-month lows vs. rivals

Published 06/07/2016, 10:34 AM
Updated 06/07/2016, 10:34 AM
© Reuters.  Dollar remains broadly lower on Yellen remarks

Investing.com - The dollar remained close to one-month lows against the other major currencies on Tuesday, after Federal Reserve Chair Janet Yellen on Monday sparked fresh uncertainty over the timing of future U.S. rate hikes.

USD/JPY fell 0.24% to 107.28.

Yellen indicated on Monday that the U.S. central bank won’t be raising interest rates until uncertainty over the economic outlook is resolved.

Yellen said she expects the economic recovery to continue but gave no indications on the timing of a next rate increase.

The remarks came after data on Friday showing that the U.S. economy added just 38,000 jobs last month, the smallest increase since September 2010.

The disappointing data ruled out chances for a June rate hike and prompted investors to push back expectations on the timing of the next rate hike until later this year.

EUR/USD held steady at 1.1362, near Monday’s three-week highs of 1.1392.

The dollar was lower against the pound and the Swiss franc, with GBP/USD up 0.94% at 1.4578 and with USD/CHF sliding 0.40% to 0.9666.

The Australian and New Zealand dollars were stronger, with AUD/USD up 1.22% at one-month high of 0.7455 and with NZD/USD advancing 0.75% to 0.6972.

Earlier Tuesday, the Reserve Bank of Australia held its benchmark interest rate at 1.75%, in a widely expected move.

Elsewhere, USD/CAD slipped 0.23% to 1.2786, the lowest since May 4.

The Richard Ivey School of Business said on Tuesday that its purchasing managers’ index fell to 49.4 last month from a reading of 53.1 in April. Analysts had expected the index to rise to 51.5 in May.

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But the commodity-related loonie strengthened as oil prices continued to climb on Tuesday, helped by supply disruptions in Nigeria.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.22% at 93.82, the lowest since May 11.

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