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.
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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