Dollar Gains as Yellen Remarks on Rates Add to Inflation Boost

The dollar extended gains as comments by Federal Reserve Chair Janet Yellen boosted demand for the currency after a better-than-forecast inflation report.

The U.S. currency rose versus the euro as Yellen said she still expects to raise interest rates this year during a speech in Providence, Rhode Island. The greenback erased earlier losses as a report showed core inflation accelerated at the fastest pace in more than two years, moving a step closer to meeting a Fed condition for higher borrowing costs.