The euro was quoted at
The dollar and euro traded in tight ranges against the yen as traders were hesitant to make bold moves in the absence of fresh hints about the direction of the U.S. and Chinese economies.
The yen had strengthened in
Optimism about the U.S. economy waned when the Conference Board said its consumer confidence index dropped to 78.1 in February from 79.4 a month earlier.
Market participants are looking to U.S. Federal Reserve chief
"Yellen is unlikely to say anything specifically critical about the rash of soft data, but if she touches on the weather situation and seems optimistic about the outlook from March onward, it will indicate that stimulus tapering will continue as planned and should push up the dollar," Sakai said.
"It would be a great surprise if Yellen speaks with nuance about slowing the pace of tapering, but if she does so it will stoke fears that something is fundamentally wrong with the U.S. economy beyond a dusting of snow," he said.
Although concern about the effect of the tapering on emerging economies has recently ebbed, Yellen's comments are valuable to market participants for clarification, said
"She may also clarify the weight the Fed puts on the unemployment rate as a means of judging U.S. economic health, and could use the testimony as an opportunity to hint at how the next Federal Open Market Committee will cover unemployment," Suzuki said.
Most Popular Stories
- E.U. Puts Sanctions on Russia, Ukraine Officials
- Crimea Seeks Financial Integration With Russia
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- Jack Daniel's Resists Changes to Tenn. Whiskey Law
- Homebuilders Show Rising Confidence in Market
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Some California Cities Seeking Water Independence
- Microsoft Releases Free OneNote for Mac
- Chile Shaken by Major Aftershock
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.