FOREX-Dollar rallies after Yellen; sterling outperforms

Tue Jul 15, 2014 3:16pm EDT

Related Topics

* Fed chief seen keeping loose monetary policies
    * British pound touches multi-year high vs dollar
    * Euro drops on ZEW survey

 (Adds dollar gains, late prices and quotes)
    By Michael Connor
    NEW YORK, July 15 (Reuters) - The dollar climbed against
most other leading currencies on Tuesday after Federal Reserve
chief Janet Yellen championed continuing loose U.S. monetary
policies to boost employment and stagnant wages.
    The British pound jumped to a multi-year high against
the dollar, meanwhile, as inflation data encouraged speculation
Britain will raise interest rates sooner than other big
economies. 
    The U.S. dollar index, which weighs the greenback
against six currencies, was up 0.24 percent to 80.382 in late
trading, versus a 0.02 percent decline shortly before the U.S.
government reported a 0.2 percent rise in retail sales in June.
    Gains in the dollar index widened as Yellen spoke to a
congressional panel in Washington.
    "The comments of Chair Yellen were very much in line with
her previous comments and showed that hers and the view of the
FOMC (policy-making Federal Open Market Committee) on the
economy have not changed that signifcantly," said currency
strategist Brian Daingerfield of RBS Securities in Stamford,
Connecticut.
    The dollar stood at 101.67 yen, up 0.15 percent and very
near the trading day's high.
    The euro fell to a three-week low against the dollar,
dropping to $1.3560, after Germany's ZEW survey of economic
sentiment suggested a shaky start for Europe's largest economy
in the third quarter.
    The euro last traded off 0.4 percent at $135.67.
    The euro was also down 0.25 percent against the yen at
137.93 yen and 0.75 percent weaker against the British
pound.
    The British pound, which outperformed after data showed a
jump in UK inflation, traded up 0.35 percent against the dollar
at $1.7145 after earlier matching a nearly six-year high of
$1.7192.
    Consumer prices rose 1.9 percent on the year in June, the
Office for National Statistics said, beating expectation for a 
1.6 percent reading. 
    

 (Additional reporting by Anirban Nag and Patrick Graham;
Editing by W Simon and Tom Brown)
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