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Dollar Mixed After Comments From Janet Yellen

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The dollar is turning in a mixed performance against its major rivals Wednesday afternoon. The buck is rising against the Euro, but is down against both the British pound and the Japanese Yen.

Federal Reserve Chair Janet Yellen asserted that the central bank is expected to raise rates gradually over time to attain inflationary target and sustain the economic expansion.

In her prepared testimony before the House Financial Services Committee, Yellen sounded upbeat on U.S. economy and said she expects additional gradual rate hikes to be appropriate over the next few years to sustain the economic expansion and return inflation to the Fed's 2 percent goal.

Yellen noted that there remains uncertainty about the outlook for inflation and said the Fed will be monitoring inflation developments closely in the months ahead.

The Fed Chief also said the central bank is likely to begin a program to normalize the size of its balance sheet this year.

The dollar has climbed to around $1.1420 against the Euro Wednesday afternoon, from an early low of $1.1489.

Eurozone industrial production growth improved more than expected in May, data from Eurostat showed Wednesday. Industrial output grew 1.3 percent on a monthly basis, faster than the revised 0.3 percent increase seen in April.

This was the fastest growth since November 2016, when output grew 1.6 percent. Output was forecast to gain 1 percent in May.

Germany's wholesale price inflation eased to the weakest in seven months in June, Destatis reported Wednesday. Wholesale prices climbed 2.5 percent year-on-year in June, slower than the 3.1 percent increase seen in May. This was the weakest since November 2016, when prices gained 0.8 percent.

The buck has dropped to around $1.29 against the pound sterling Wednesday afternoon, from an early high of $1.2811.

Britain's unemployment rate declined to the lowest level in 42 years and the employment rate was the highest on record, while wage growth continued to lag behind inflation.

The ILO jobless rate fell to 4.5 percent in the three months to May from 4.9 percent in the same period of the previous year, data from the Office for National Statistics showed Wednesday.

The figure was the lowest since 1975. The rate was expected to remain at 4.6 percent, as seen in the quarter to April.

The greenback fell to an early low of Y112.915 against the Japanese Yen Wednesday, but has since recovered to around Y113.190.

Producer prices in Japan were flat on month in June, the Bank of Japan said on Wednesday, in line with expectations and unchanged from the previous month. On a yearly basis, prices advanced 2.1 percent, also unchanged but exceeding forecasts for 2.0 percent.

Japan's tertiary industry activity dropped in May after recovering in April, data from the Ministry of Economy, Trade and Industry showed Wednesday. The tertiary industry activity dropped 0.1 percent month-on-month in May, reversing a 1.4 percent rise in April. However, the pace of decrease was slower than the expected 0.5 percent fall.

by RTT Staff Writer

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