The dollar came under further pressure on Friday after comments from Federal Reserve Bank of New York President William C. Dudley.
Dudley said in a speech about the economy at the University of Bridgeport that the uncertainty surrounding the U.S. economy outlook needs “cautious and gradual approach” for interest rate hikes.
“Although the downside risks have diminished since earlier in the year, I still judge the balance of risks to my inflation and growth outlooks to be tilted to the downside.” Dudley said.
His remarks reinforced the same cautious tone in the Fed minutes for March’s policy meeting released this week.
“Several expressed the view that a cautious approach to raising rates would be prudent or noted their concern that raising the target range as soon as April would signal a sense of urgency they did not think appropriate,” the minutes said.
The dollar cut some of its losses after Fed Chairwoman Janet Yellen said the U.S. economy is on a solid course and still on track to warrant further borrowing cost increases.
As of 14:40 GMT, the dollar traded lower around 94.30 from the session’s opening at 94.50, as depicted by the dollar index.
Now, the dollar index is set for its second straight weekly decline amid expectations the first interest rate hike this year would not occur before June.
Against the yen, it rose today to hover around 108.65 after hitting an 18-month low of 107.65 on Thursday.
on: April 08, 2016