Dollar Hits One-Week Low Versus Euro as Yellen Backs Fed Easing

The dollar touched a one-week low against the euro after Federal Reserve chairman nominee Janet Yellen said the economy and labor market are performing “far short of their potential.”

The Bloomberg U.S. Dollar Index declined following the biggest slide in three weeks after the Fed vice chairman said in a prepared text that the outlook must strengthen before a reduction in monetary stimulus takes place. The pound remained stronger after the Bank of England improved its outlook for unemployment.

The dollar was little changed at $1.3486 per euro as of 9:46 a.m. in Tokyo after earlier touching $1.3498, the weakest since Nov. 7. It was at 99.21 yen following a 0.4 percent slide to 99.25 yesterday. Japan’s currency was at 133.81 per euro from 133.85.

The Bloomberg U.S. Dollar Index, which monitors the greenback against 10 major counterparts, fell 0.2 percent to 1,016.21. It lost 0.4 percent yesterday, the most since Oct. 22.

(Source: Bloomberg)