The U.S. dollar climbed against most major currencies on Tuesday as investors were digesting the latest remarks from Federal Reserve Chair Janet Yellen.
Yellen said on Tuesday that it's appropriate for the central bank to continue gradually tighten its monetary policy in view of the uncertainties around inflation.
She argued that faster monetary tightening could jeopardize economic expansion, while moving too slow could risk overheating the economy, as the job market continues strengthening.
"It would be imprudent to keep monetary policy on hold until inflation is back to two percent," said Yellen.
The Fed has raised interest rates twice this year. Last week policymakers pointed to one more rate hike later this year and three for the next year after the conclusion of a two-day policy meeting.
The dollar index, which measures the greenback against six major peers, was up 0.31 percent at 92.934 in late trading.
In late New York trading, the euro fell to 1.1800 U.S. dollars from 1.1839 U.S. dollars, and the British pound declined to 1.3458 U.S. dollars from 1.3467 U.S. dollars. The Australian dollar decreased to 0.7893 U.S. dollar from 0.7944 U.S. dollar.
The U.S. dollar bought 112.15 Japanese yen, higher than 111.66 yen of the previous session. The U.S. dollar rose to 0.9690 Swiss franc from 0.9674 Swiss franc, and it edged down to 1.2345 Canadian dollars from 1.2354 Canadian dollars.
Yellen said on Tuesday that it's appropriate for the central bank to continue gradually tighten its monetary policy in view of the uncertainties around inflation.
She argued that faster monetary tightening could jeopardize economic expansion, while moving too slow could risk overheating the economy, as the job market continues strengthening.
"It would be imprudent to keep monetary policy on hold until inflation is back to two percent," said Yellen.
The Fed has raised interest rates twice this year. Last week policymakers pointed to one more rate hike later this year and three for the next year after the conclusion of a two-day policy meeting.
The dollar index, which measures the greenback against six major peers, was up 0.31 percent at 92.934 in late trading.
In late New York trading, the euro fell to 1.1800 U.S. dollars from 1.1839 U.S. dollars, and the British pound declined to 1.3458 U.S. dollars from 1.3467 U.S. dollars. The Australian dollar decreased to 0.7893 U.S. dollar from 0.7944 U.S. dollar.
The U.S. dollar bought 112.15 Japanese yen, higher than 111.66 yen of the previous session. The U.S. dollar rose to 0.9690 Swiss franc from 0.9674 Swiss franc, and it edged down to 1.2345 Canadian dollars from 1.2354 Canadian dollars.
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