The dollar was relatively flat early on Thursday after Federal Reserve Chair Janet Yellen did not deliver a much hawkish tone as many had initially expected. The Canadian dollar held firm near a 13-month peak after the Bank of Canada raised interest rates for the first time since 2010.
The greenback fell as Yellen’s comments spurred a sharp drop in U.S. Treasury yields.
The dollar index versus a basket of major currencies was little changed at 95.758 after pulling back to as low as 95.511 the day earlier, its weakest in 12 days.
The U.S. currency edged up 0.2 percent at 113.440 yen after falling nearly 0.7 percent overnight, when it retreated from a four-month peak near 114.495 touched earlier in the week on expectations of U.S.-Japan monetary policy divergence.
The Canadian dollar, also supported by an increase in crude oil prices, was at C$1.2750 a dollar, after rallying over one percent to C$1.2681 overnight, its highest since June 2016.
The BOC increased interest rates for the first time in almost seven years, claiming the economy was no longer in need of as much stimulus.
The material has been provided by InstaForex Company – www.instaforex.com