U.S. Dollar Falls Against Majors

06:53, 17th April 2014

(RTTNews) - The U.S. dollar was down against its most opponents in European deals on Thursday in reaction to Federal Reserve Chair Janet Yellen's statement that the central bank would maintain highly accommodative policy for some time to support economic recovery.

The Federal Reserve will keep its benchmark interest rates at exceptionally low levels for a considerable time, Fed Chair Janet Yellen said Wednesday.

Yellen acknowledged that economic growth slowed over the winter, but suggested that a significant part of the weakness was due to unusually cold winter weather.

"The Fed will remain highly accommodative until employment and inflation reach healthier levels", Yellen told the Economic Club of New York.

Yellen also said it was "quite plausible" the economy would be back to near full employment and a healthier level of inflation by the end of 2016.

European stocks are trading lower ahead of Easter holiday, as well as on concerns over Ukraine. Top diplomats from the U.S., European Union, Ukraine and Russia meet in Geneva to discuss the situation in Ukraine.

The greenback depreciated to 1.6841 against the pound, a level unseen since November 2009. This is a 0.3 percent decrease from yesterday's closing quote of 1.6793. If the greenback slides further, 1.70 is likely seen as its next downside target level.

The greenback fell to a 6-day low of 1.3863 against the euro. The next possible support for the greenback lies around the 1.39 mark. The pair was worth 1.3814 when it closed deals yesterday.

The greenback which ended Wednesday's trading at 0.8815 against the franc slipped to a 3-day low of 0.8779. Continuation of decline could take the greenback to a support around the 0.87 area.

The greenback that declined to 101.86 against the yen earlier has moved away shortly thereafter. The pair was trading around 102.05, down from Wednesday's closing quote of 102.22.

Looking ahead, Canada consumer price index for March and U.S. weekly jobless claims for week ended April 12 are due in the New York session.