“On fiscal policy, Yellen is to suggest that the US “act big” and make use of the low borrowing costs.
On the dollar, it should be reiterated that the new administration is committed to the market determined exchange rate.
With the dollar weakening, the euro gained, rising 0.3% to $1.2109.
More volatile currencies such as the Australian dollar also capitalised on the weaker U.S. currency, with the Aussie up 0.4% at $0.7715.
“We’ve seen comments from Janet Yellen that she won’t be pursuing a weak dollar policy per se, but that doesn’t mean that the overall impact of Fed policy won’t keep the dollar weakening,” said Michael McCarthy, chief strategist at CMC Markets in Sydney.
Janet Yellen, Joe Biden, Yellen, Donald Trump, Sterling, “ We’ve, won’t, ”, Michael McCarthy, “
U.S, Treasury, greenback, ” ING, Senate Finance, CMC Markets