The dollar fell, while stocks erased losses after Janet Yellen said the Federal Reserve has not fallen behind with its monetary policy even as she signaled rates were “likely” to rise at its March meeting.
The dollar halted a five-day rally with its biggest drop since January as the Fed chair did little to alter perceptions for the pace of future tightening. Gold futures edged higher in late trading. The S&P 500 Index narrowly averted its first two-day slide since January and the Dow Jones Industrial Average ended the week above 21,000. The yield on the 10-year Treasury was little changed after falling back below 2.5 percent.