During Wednesday’s Asia trade, the greenback edged lower against the key Japanese currency and the euro, thus extending the weak tone overnight generated by Janet Yellen’s cautious position on rate hikes.
The evergreen buck traded at ¥112.30 right after hitting ¥112.39 a bit earlier in New York.
Delivering a speech before the Economic Club, the Fed’s chief stressed global economic as well as financial uncertainty fully justified a relatively slow path of interest rate hikes. In that hint, investors saw moderate appetite to rate hikes next month. Following Yellen’s remark, in New York the greenback dipped to ¥112.61 from ¥113.40.
The evergreen buck had been under tough selling pressure since the middle of March, when the Fed took an unusually dovish position on the world economy and then pared its predictions for rate hikes during the gathering on 15-16 March. Additionally, a bunch of comments from other Fed’s representatives powered hopes again that the number one bank would increase rates in April.