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Dollar Tumbles to Lowest Since September After Yellen's Comments

  • Euro leads gains on cross unwinding against yen, a trader says
  • Sterling rises after McCafferty says favors faster QE unwind
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Janet Yellen's House Testimony in Two Minutes

The dollar fell against all its Group-of-10 peers after comments from Federal Reserve Chair Janet Yellen on inflation spurred investors to lower their expectations on the pace of U.S. rate increases.

The Bloomberg Dollar Spot Index tumbled to its lowest level since September after Yellen told the U.S. Congress Wednesday “there was uncertainty about when and how much inflation will respond to tightening resource utilization”. The euro led gains on expectations the European Central Bank could send hawkish signals at its meeting next week while the pound also rose after the Bank of England’s Ian McCafferty suggested in an interview with The Times he favored faster unwinding of quantitative easing.