On Tuesday forex investors were cautious about betting on the dollar because of the apprehension caused by the testimony Janet Yellen (Federal Reserve Chair) would give in the congressional meeting on Tuesday.
The release of the January congressional meeting minutes last week drew a lot of attention to Janet Yellen Testimony before the Banking Committee of the United States Senate on Tuesday. This has affected the dollar rate, limiting further increase until this mist clears.
BK Asset Management’s managing director, Kathy Lien said that “the more convoluted and muddled her message is on when rates will rise, the more negative it will be for the U.S. dollar. But even in this case, we do not expect the dollar to crash because rates are still poised to move higher,”
The United States dollar went down from 119.35 to 118.92 against the Japanese Yen. The euro was exchanged at $1.1335 having experienced a 0.4 percent overnight reduction, this slight reduction should be as a result of the new tension arising from the verdict of Greece creditors concerning their list of reforms. The Euro also traded 0.6 percent down against the Japanese Yen at a rate of 134.79yen
United States dollar index was 94.562 rising at 0.3 percent and it has maintained an almost eleven years high of 95.481 as at January.
Image:By United States Federal Reserve (Obtained via email from Federal Reserve OPA.) [Public domain], via Wikimedia Commons