Currency Swings Soar to 2012 High as Yellen Comments on Turmoil
- Financial conditions are `less suportive,' Fed chair says
- Implied volatility in euro-dollar rises to two-month high
Yellen: No Known Restriction Preventing Negative Rate
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Foreign-exchange volatility climbed to the highest level since 2012 as Federal Reserve Chair Janet Yellen signaled continuing market turmoil may hurt the prospect of multiple interest-rate increases this year.
The yen rallied to the strongest level against the dollar since October 2014 while a gauge of the U.S. currency reached a three-month low. Implied one-month volatility for the euro versus the dollar rose to a two-month high on Wednesday while a similar measure of swings for the yen against the greenback remained near the highest since July 2013.