Dollar Gains Before Yellen Testimony

by on July 15, 2014 8:56 am GMT

The dollar has strengthened 0.4 percent in the past three months. The yen gained 0.8 percent, while the euro weakened 1.2 percent.

USDJPY remained higher following its biggest one-day advance in a week before Federal Reserve Chair Janet Yellen testifies before U.S. lawmakers today and tomorrow.

The dollar was little changed at 101.58 yen at 7:08 a.m. in London after strengthening 0.2 percent yesterday, the most since July 3. The U.S. currency was unchanged at $1.3619 per euro. The yen traded at 138.33 per euro from 138.28 yesterday.

Markets will examining Yellen’s remarks during her congressional appearances on Tuesday and Wednesday for clues to the timing of further interest rate hikes by the U.S. central bank, after U.S. data in the second quarter signaled that the economy is gaining momentum.

Private-sector jobs and nonfarm payrolls growth in June were better than economists had expected, and the unemployment rate fell to a nearly six-year low of 6.1 percent.

However, comments from other Fed officials have implied that policymakers are in no rush to tighten, and many investors expect more of the same from Yellen.