Yellen comments lead to spike, then drop of dollar
The Fed Chair provoked a spike in the dollar with comments that a rate hike was likely, until investors noticed her prepared remarks emphasized "gradual" rate hikes, after which the dollar sagged.
St Lous Federal Reserve Bank President James Bullard brought the dollar down with a speech downplaying the likelihood of a March rate increase. Fed Chair Janet Yellen a few minutes later provoked spike in the dollar with a comment that a rate adjustment was likely, until investors read her speech carefully. The Fed chair emphasized “gradual” rate hikes, and the dollar sagged.
Brazil and Mexico are the top performers at 2 pm among the major emerging market ETFs as the dollar weakened following the Fed Chair’s remarks.