Dollar Declines After Yellen Says Fed Rate Hikes Will Be Gradual

The dollar extended losses after Federal Reserve Chair Janet Yellen said the central bank will take a gradual approach to raising interest rates.

The greenback fell versus most major peers as Yellen said policy makers’ plan for a modest path to higher rates is based on expectations for moderate growth in real gross domestic product, additional strengthening in the labor market, and inflation rising to 2 percent over the next few years. In a speech in Jackson Hole, Wyoming, she also said the case to raise rates is getting stronger as the U.S. economy approaches the central bank’s goals.