The dollar fell to the lowest level in four weeks after Federal Reserve Chairman Janet Yellen said the recovery in the U.S. labor market is “far from complete,” while repeating the Fed’s statement that asset purchases aren’t on a “pre-set course.”
The euro strengthened the most in two weeks against the dollar after European Central Bank President Mario Draghi refrained from announcing any additional stimulus measures that tend to debase a currency.
The yen fell to a six-month low versus the dollar after reports showed manufacturing in China, Europe and the U.K. expanded last month, driving demand for risk and underscoring Japan’s currency’s role in the carry trade.
The dollar climbed to the strongest level in almost two weeks against the euro as investors assess Federal Reserve plans to wind down bond-buying next year amid signs that economic growth is gaining momentum.
The yen fell against most major currencies, sliding from near an eight-month high versus the dollar, amid speculation the Federal Reserve may consider more stimulus for the U.S. economy at its meeting tomorrow.