While last month’s jobs report, released Friday, was “disappointing”, and bears watching, policymakers will respond “only to the extent that we determine or come to the view that the data is meaningful in terms of changing our view of the medium- and longer-term economic outlook”.
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The dollar rose to 107.78 yen from 107.52 yen while the euro rose to $1.1359 from $1.1357. Prices pulled back some on Wednesday after U.S. Energy Information Administration data showed a surprise build in stockpiles, but stayed above $50 a barrel.
Although the report was “concerning, let me emphasize that one should never attach too much significance to any single monthly report”, Yellen said.
“What was notable from Yellen’s comment yesterday was the absence of any comment relating to a summer rate rise, contrasting with her comments a couple of weeks ago, which would suggest that in the absence of a strong rebound in the June payrolls numbers, the earliest we could get a move on rates is likely to be September, if at all, given the proximity of the USA election”.
Japan’s Nikkei .N225 extended losses to trade 0.3 percent lower, weighed down by a stronger yen.
The Bloomberg Dollar Spot Index declined 0.4 per cent as of 5pm NY time, to the lowest level since May 6.
The Nasdaq Composite added 26.20 points, or 0.53 percent, to 4,968.71.
Global crude benchmark Brent futures hit a seven-month high of $50.83 per barrel on Monday before easing to $49.57 early on Tuesday.
The Dow Jones industrial average held onto a gain of 17.95 points, or 0.1 percent, to 17,938.28.
Over the last decade, interest rates have increased only by 0.25 percentage points. Spot gold prices XAU= were down 0.1 percent to $1,243.57 an ounce, still near a 2-week high. Hong Kong’s Hang Seng slid 0.4 percent. LDR jumped $14.41, or 63.8 percent, to $36.99 and Zimmer fell $2.11, or 1.7 percent, to $119.43.
Alexion Pharmaceuticals said a study of its drug Soliris failed, and its stock lost $16.86, or 10.9 percent, to $138.13.
United States gold climbed 0.3% to $1,251.20.
The dollar fell to 0.9650 Swiss francs from 0.9700 Swiss francs, and it inched down to 1.2767 Canadian dollars from 1.2815 Canadian dollars.
OVERSEAS: Germany’s DAX rose 1.6 percent and the CAC-40 in France was up 1.2 percent.
On Tuesday, the U.S. dollar was unchanged against the euro at $1.1358 and to Yen, it lost 0.2 percent at 107.37. The dollar index – a gauge of the U.S. currency against other reserve currencies – was down 1.5 percent on the day at 94.15, after hitting a two-month intraday high of 95.97 on Monday.
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European stock markets rose at the start of trading on Tuesday, mirroring gains elsewhere after Federal Reserve Chair Janet Yellen expressed confidence in the USA economy despite poor jobs data.
