Dollar weakens following Yellen comments

The dollar has weakened against the majority of its forex trading peers today (April 17th), with the currency sent lower following comments from Federal Reserve chair Janet Yellen.

According to the US central bank chief, interest rates will be kept around current record-lows for a prolonged period, while policymakers will also make a "continuing commitment" to supporting the country's economic recovery.

Ms Yellen stated the risks of low inflation outweigh those associated with rising consumer prices and indicated the Fed expects the US unemployment rate to fall to between 5.2 per cent and 5.6 per cent by the end of 2016. This compares with the current level of 6.7 per cent.

Elsewhere, sterling climbed in forex trading markets after data published yesterday showed the UK jobless level fell below the Bank of England's seven per cent target over the course of the three months to the end of February. 

Last year, governor Mark Carney said this threshold would be used to indicate the time is right for policymakers to discuss lifting UK interest rates, though he subsequently altered this forward guidance.