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U.S. Shares Advance While Dollar Sinks as Yellen Conveys Caution

  • Fed Chair signals key rates likely to stay lower for longer
  • Treasuries jump with dollar set for worst month since 2011
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Janet Yellen: Reading on U.S. Economy Somewhat Mixed

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U.S. stocks rallied with Treasuries, while the dollar fell after Federal Reserve Chair Janet Yellen signaled the central bank remains wary of raising interest rates amid threats to American growth from a slowing global economy.

The Standard & Poor’s 500 Index jumped the most in two weeks to erase losses for the year as Yellen indicated deteriorating world growth warrants a slow approach to tightening monetary policy. The Bloomberg Dollar Spot Index headed for its worst month in five years as the likelihood of lower rates for longer damped the appeal of the greenback. Treasuries rose, sending yields on 10-year notes down to 1.81 percent. The Ibovespa extended its best monthly advance since 1999 amid speculation Brazil’s president will be impeached.