Investing.com - The dollar dipped against the other major currencies on Thursday after getting a lift from comments by Federal Reserve Chair Janet Yellen who indicated that the U.S. central bank is prepared for a quick pace of rate hikes this year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased 0.14% to 101.17, backing away from overnight highs of 101.4.
Speaking in San Francisco overnight, Yellen said that waiting too long to begin raising rates could "risk a nasty surprise down the road."
The rate increase in December reflected confidence the U.S. economy will continue to recover, Yellen said.
Upbeat data on U.S. consumer prices and industrial production on Wednesday also fed into expectations for further rate hikes this year.
Investors were looking ahead to reports on U.S. jobless claims and manufacturing activity in the Philadelphia region later Wednesday.
The euro pushed higher against the dollar, with EUR/USD rising 0.21% to 1.0651 ahead of the European Central Bank’s policy meeting later in the day at which no change was expected.
The euro ended Wednesday’s session down 0.77% against the dollar.
The dollar was little changed against the yen, with USD/JPY at 114.70. after jumping 1.8% on Thursday.
Sterling moved higher, with GBP/USD climbing 0.47% to 1.2314 as investors continued to assess the U.K. government’s plans for a clean break from the European Union.