Pledges of stimulus from
Yellen, one of the dovish Fed policymakers, was more balanced than expected in her speech at Jackson Hole. She reiterated her view that there is still significant slack in the US labour market. Yellen suggested that increases in the Federal funds rate target may come sooner than the Federal Reserve Open Market Committee currently expects and could then proceed at a more rapid pace.
Traders also moved into the safe haven currency amid escalating tensions between
A controversial Russian aid convoy pushed into eastern
The US dollar rose to nearly a 1-year high of 1.3184 against the euro, from an early low of 1.3205. At last week's close, the greenback was trading at 1.3238 against the euro. If the greenback extend its uptrend, it is likely to find resistance around the 1.31 area.
Against the the Swiss franc and the yen, the greenback advanced to a 9-month high of 0.9177 and an 8-month high of 104.26 from early lows of 0.9157 and 104.12, respectively. The greenback may test resistance near 0.92 against the franc and 105.04 against the yen.
Moving away from an early low of 1.6559 against the pound, the greenback rallied to a 5-month high of 1.6534. On the upside, 1.64 is seen as next resistance level for the greenback.
Looking ahead, Ifo German business climate indicator for August is due in the European session.
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