Dollar hits four-month high ahead of Yellen's testimony

Dollar hits four-month high ahead of Yellen's testimony

"More generally, the Committee would be prepared to use its full range of tools, including altering the size and composition of its balance sheet, if future economic conditions were to warrant a more accommodative monetary policy than can be achieved exclusively by reducing the federal funds rate". The greenback continued trading lower for most of the Asian session today.

This afternoon Federal Reserve Chairwoman Janet Yellen is set to give a testimony to congress.

The debate over connections between President Donald Trump's election campaign and the Russian government took a new twist yesterday when Donald Trump Jr. tweeted the email conversation that led to a meeting between members of the campaign and a Russian lawyer in Trump Tower in June 2016.

Asian currencies were gaining on the United States dollar during the first trading session of the day.

The weaker currency makes dollar-denominated commodities less expensive for holders of other currencies, which could subdue demand. At the Interbank Foreign Exchange Market, the home unit resumed higher at 64.46 from last closing value of 64.53 on sustained dollar unwinding and advanced to 64.45 per dollar. Westpac's consumer confidence survey for July could have also supported the aussie.

Unemployment in the United Kingdom fell to a 42-year low in the three months to May, figures out today showed.

The dollar was stuck near its lowest level in more than a year against the euro on Wednesday while stocks edged higher in light trading ahead of Janet Yellen's testimony to Congress. The Fed noted that policymakers still expect one more rate hike this year and another three hikes in 2018.

More news: Feds probing possible terror act at Air Force recruiting center

And what will the Federal Reserve do next?

Looking at Europe, in a relatively quiet day the euro gained in late USA session last night on the political clutter from Washington.

In an interview for a Scottish newspaper, the Press and Journal, published on Wednesday, Bank of England Deputy Governor Ben Broadbent said that while there was reason to see the bank moving towards higher rates, there were "a lot of imponderables".

The greenback opened at NT$30.570 and moved between NT$30.540 and NT$30.594 before the close.

Benchmark 10-year Treasury yields rose to 2.383 percent from 2.371 percent late on Monday.

"Normalisation of monetary policy in the coming months is nearly priced in, and the Fed will start shrinking its balance sheet in September, and this does not necessarily mean a delay of rate hikes", said Masafumi Yamamoto, chief forex strategist at Mizuho Securities in Tokyo.

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