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Dollar Falls After Comments From Janet Yellen

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The dollar has turned lower against its major rivals Friday afternoon, after Federal Reserve Chair Janet Yellen provided no hints on monetary policy during her speech in Jackson Hole, Wyoming at the Economic Symposium.

Speaking at the conference, Yellen told that 'core' reforms enacted after the 2008 financial crisis have boosted financial resilience without limiting credit or growth.

"The balance of research suggests that the core reforms we have put in place have substantially boosted resilience without unduly limiting credit availability or economic growth," she said.

"Any adjustments to the regulatory framework should be modest and preserve the increase in resilience at large dealers and banks associated with the reforms put in place in recent years," Yellen added.

The Fed chief was mum on monetary policy, disappointing markets who were hopeful for guidance on interest rate policy.

After reporting a sharp jump in new orders for U.S. manufactured durable goods in the previous month, the Commerce Department released a report on Friday showing a sharp pullback in durable goods orders in the month of July.

The Commerce Department said durable goods orders plunged by 6.8 percent in July after surging up by 6.4 percent in June. Economists had expected durable goods orders to slump by 6.0 percent.

The dollar has dropped to nearly a 3-week low of $1.1875 against the Euro Friday, from an early high of $1.1772.

The German economy expanded as initially estimated in the second quarter, detailed report from Destatis showed Friday. Gross domestic product grew 0.6 percent sequentially in the second quarter, slightly slower than the 0.7 percent seen in the first quarter. The rate matched preliminary estimate.

German business confidence weakened slightly from a record high in August, reports said citing survey results from Ifo institute on Friday. The business sentiment index fell to 115.9 in August from July's record high of 116. The expected score was 115.5.

Germany's construction orders increased in June from May, Destatis reported Friday. New orders in the main construction industry increased by adjusted 3.9 percent month-on-month in June.

Germany's import price inflation slowed to the weakest in eight months in July, Destatis reported Friday.

Import price inflation slowed more-than-expected to 1.9 percent in July from 2.5 percent in June. This was the slowest rate since November, when prices gained 0.3 percent and also weaker than the expected 2.3 percent.

At the same time, export price inflation slowed to 1.5 percent annually in July from 1.8 percent a month ago.

French consumer sentiment dropped slightly in August, survey results from the statistical office Insee showed Friday. The consumer sentiment index came in at 103 versus 104 in July. The score came in line with expectations.

The buck has fallen to around $1.2875 against the pound sterling Thursday afternoon, from a high of $1.2792 this morning.

The greenback reached a high of Y109.840 against the Japanese Yen this morning, but has since pulled back to around Y109.300.

Overall consumer prices in Japan advanced 0.4 percent on year in July, the Ministry of Internal Affairs and Communications said on Friday - in line with expectations and unchanged from the June reading.

Core inflation, which excludes food prices, advanced an annual 0.5 percent, again unchanged and matching forecasts.

Producer prices in Japan were up 0.6 percent on year in July, the Bank of Japan said on Friday. That was beneath expectations for 0.8 percent and down from the downwardly revised 0.7 percent gain in June.

by RTT Staff Writer

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