(Updates prices, adds comments, changes dateline; previous
* Dollar extends gains after Yellen testimony
* Dovish Yellen comments were expected
* Rouble gains on Putin comments
By Sam Forgione
NEW YORK, May 7 The dollar rose broadly on
Wednesday after traders removed short positions against the U.S.
currency on the view that persistently dovish comments from the
Federal Reserve have become less effective in weakening the
Fed Chair Janet Yellen, in testimony before the Joint
Economic Committee of Congress, maintained her dovish stance and
said a high degree of monetary accommodation was warranted given
"considerable" slack in the U.S. labor market and low inflation.
"There is nothing new for dollar bears to feast on," said
David Gilmore, a partner at Foreign Exchange Analytics in Essex,
The dollar had pared losses against the euro and risen
broadly ahead of Yellen's testimony after investors began
removing short positions on the view that negative sentiment
toward the U.S. currency had largely been priced into the
The dollar also extended its gains on a slight rise in
Treasuries yields after the release of Yellen's testimony at 10
a.m. (1400 GMT). Prices of 30-year Treasury bonds
were last down 14/32 to yield 3.4 percent, from a yield of 3.38
percent late on Tuesday.
The euro was last down 0.03 percent against the
dollar at 1.3923. The dollar was last up 0.01 percent against
the Japanese yen at 101.69, and was up 0.09 percent
against the Swiss franc at 0.8749 francs.
The U.S. dollar index, which measures the dollar
against a basket of six major currencies, was last up 0.08
percent at 79.170.
The dollar fell 1.17 percent against the Russian rouble
to trade at 34.99 roubles on reduced geopolitical risk
surrounding Russia and Ukraine.
The Russian currency extended its gains against the dollar
after Russian President Vladimir Putin called on separatists in
eastern Ukraine to postpone a referendum on independence for the
mostly Russian-speaking region. Putin also said Moscow had
withdrawn troops from the border with Ukraine. [ID: nL6N0NT52F]
"Political risk has faded significantly in Ukraine," said
Sebastien Galy, currency strategist at Societe Generale in New
(Reporting by Sam Forgione; Additional reporting by Patrick
Graham in London; Editing by Dan Grebler)