U.S. Dollar Holds Steady Just Before Yellen Makes Her Speech at IMF

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U.S. Dollar Holds Steady Just Before Yellen Makes Her Speech at IMFThe U.S. dollar traded 0.2 percent above its lowest level in six weeks against the euro as the investors waited for Federal Reserve Chair Janet Yellen’s briefing on Wednesday.

The dollar stood steady after earlier declining in the past five days versus major counterparts after a Tuesday’s report indicated that U.S. manufacturing activity expanded much slower than forecasted.

The dollar remained slightly unchanged at $1.3677 per euro by 8:21 a.m. in London, compared to yesterday value of $1.37, a lowest level since May 21. The greenback remained slightly steady against the yen at 101.50. The euro traded at 138.81 yen, compared with 138.88 yen on Tuesday.

“The U.S. data has been weakening somewhat, and that is accelerating dollar selling,” Yuki Sakasai, a foreign-exchange strategist at Barclays told Bloomberg. “We need some hawkish signals from the Fed to change that trend.”

M.s. Yellen was scheduled to address the International Monetary Fund on Wednesday in Washington.

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The Australian dollar declined after the country’s trade shortfall expanded more than analysts had projected. The Aussie fell 0.4 percent to 94.63 U.S. cents after surging on Tuesday to 95.05 cents, the highest level since November 7.

The Aussie took a battering after a report showed that trade shortfall surged to A$1.9 billion in May, the biggest deficit since November 2012 and nearly 10 times bigger than the A$200 million deficit estimated in a Bloomberg survey of economists.

Exports fell 5 percent from a month earlier on lower iron ore prices. The prices of iron ore, which is Australia’s largest export, plunged 30 percent in the first six months of the year. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Yashu Gola at yashu@forexminute.com