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    Dollar hits fresh one-month lows in quiet trad

    The dollar fell to fresh one-month lows against the other major currencies in quiet trade on Wednesday, as uncertainty over the timing of the next U.S. rate hike continued to dampen demand for the greenback.

    USD/JPY dropped 0.54% to 106.80.

    Sentiment on the greenback remained fragile after Federal Reserve Chair Janet 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.

    EUR/USD gained 0.38% to fresh three-week highs at 1.1401.

    The dollar was lower against the pound and the Swiss franc, with GBP/USD up 0.13% at 1.4562 and with USD/CHF retreating 0.63% to 0.9592.

    The pound strengthened after the U.K. Office for National Statistics earlier said that industrial production rose 2.0% in April after a 0.3% increase in March, the largest monthly increase since July 2012.

    Manufacturing output rose 2.3% after a 0.1% increase in March, in what was also the fastest monthly increase since July 2012.

    The pound’s gains were held in check however amid ongoing uncertainty over whether Britain will remain in the European Union or not at a referendum on June 23.

    The Australian and New Zealand dollars were stronger, with AUD/USD up 0.17% at a one-month high of 0.7471 and with NZD/USD climbing 0.60% to 0.7019.

    Elsewhere, USD/CAD slid 0.45% to 1.2681, the lowest since May 3.

    Statistics Canada reported on Wednesday that building permits fell 0.3% in April, disappointing expectations for an increase of 1.5%.

    Data also showed that Canada’s housing starts rose by 188,600 units last month, compared to expectations for an increase of 190,000 in May.

    Separately, the commodity currencies remained supported as oil prices moved sharply higher after data showed that crude supplies in the U.S. fell more-than-expected last week.

    The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.42% at 93.44, the lowest since May 5.

     


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