Better than expected US data yesterday failed to re-ignite the USD’s support. Even though Housing starts were worse than expected for January; Building permits and the Philly Fed Business outlook improved.
The dollar pulled back on Thursday despite peaking at one-month highs on Wednesday following strong U.S. inflation data, as demand for the greenback cooled off with Treasury yields falling from their peaks.
The USD hit lows of 1.0561 against the Euro yesterday as the Fed Reserve Chair Janet Yellen appeared in front of the US Senate Banking Committee, and told them that the Fed is likley to quicken the pace of interest rate hikes in its upcoming meetings.
The dollar slipped away from a three-week peak against a basket of currencies on Tuesday as forex investors awaited congressional testimony by Federal Reserve Chair Janet Yellen. Investors are keen for clues to the pace of the central bank's interest rate increases.
US dollar support continued into this morning, with the USD continuing to distance itself from 2nd February lows. The US Dollar index, measuring the strength of the US dollar against a basket of other currencies, is currently trading at the price of 100.90 after hitting monthly lows of 99.23 earlier this month.