The U.S. dollar fell against most major currencies on Friday as investors were digesting the latest remarks from a key Federal Reserve official.
William Dudley, president of Federal Reserve Bank of New York, said on Friday that "it's too soon to judge exactly the timing of when the next rate hike might occur, but the path is still clear that short term rates are going to move higher."
He added that above-trend economic growth and "very easy" financial conditions suggest the need to hike, while inflation that has fallen "farther below our target than we anticipated" suggests it is better to wait.
Analysts said Dudley's dovish words dented market expectation for a rate-hike later this year, which weighed on the greenback on Friday.
The dollar index, which measures the greenback against six major peers, was down 0.36 percent at 91.330 in late trading.
In late New York trading, the euro rose to 1.2028 U.S. dollars from 1.2007 U.S. dollars, and the British pound climbed to 1.3208 U.S. dollars from 1.3079 U.S. dollars. The Australian dollar increased to 0.8063 U.S. dollar from 0.8036 U.S. dollar.
The U.S. dollar bought 107.80 Japanese yen, lower than 108.57 yen of the previous session. The U.S. dollar declined to 0.9452 Swiss franc from 0.9520 Swiss franc, and it edged up to 1.2137 Canadian dollars from 1.2135 Canadian dollars.
William Dudley, president of Federal Reserve Bank of New York, said on Friday that "it's too soon to judge exactly the timing of when the next rate hike might occur, but the path is still clear that short term rates are going to move higher."
He added that above-trend economic growth and "very easy" financial conditions suggest the need to hike, while inflation that has fallen "farther below our target than we anticipated" suggests it is better to wait.
Analysts said Dudley's dovish words dented market expectation for a rate-hike later this year, which weighed on the greenback on Friday.
The dollar index, which measures the greenback against six major peers, was down 0.36 percent at 91.330 in late trading.
In late New York trading, the euro rose to 1.2028 U.S. dollars from 1.2007 U.S. dollars, and the British pound climbed to 1.3208 U.S. dollars from 1.3079 U.S. dollars. The Australian dollar increased to 0.8063 U.S. dollar from 0.8036 U.S. dollar.
The U.S. dollar bought 107.80 Japanese yen, lower than 108.57 yen of the previous session. The U.S. dollar declined to 0.9452 Swiss franc from 0.9520 Swiss franc, and it edged up to 1.2137 Canadian dollars from 1.2135 Canadian dollars.
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