The U.S. currency strengthened on Wednesday’s opening bell thanks to Yellen’s comments regarding the continuation of interest rate hikes. The euro recovered from its downfall yesterday amidst the election in Germany.
U.S. Federal Reserve Chief Janet Yellen said yesterday that the central bank needed to slowly lift rates regardless of the rising concerns about inflation. She suggested that it wouldn’t be wise to maintain monetary stimuli at least until inflation returned to 2 percent.
The U.S. dollar index stood tall at 93.07. The index notched its best monthly level of 93 last Tuesday.
The dollar was also ahead of its Japanese counterpart closing at 112.27 yen after bouncing back from 111.50 yen on the previous day.
The euro finished in the red zone yesterday as it fell to a five-week low of $1.17575. Still, the common currency managed to recover on early Wednesday trading climbing to $1.1790.
Markets in Asia fell on Wednesday as investors heard Yellen’s remark about rate hikes.
Japanese benchmark Nikkei 225 index dropped more than 0.41 percent due to the poor performance of its financials and auto sectors. The Aussie benchmark ASX 200 index inched down by 0.06 percent, with its information technology as the leading decliner. The South Korean benchmark Kospi index traded just above the flat line by 0.03 percent.