The world's reserve currency slipped in value on Thursday against the common currency of the European Union in advance of the globe's largest economy releasing economic data about the job market, according to Bloomberg.
U.S. Federal Reserve chair Janet Yellen said on Wednesday that there are no clear indications of inflation and the body she leads is committed to aiding the economic recovery.
"What Yellen said reinforced a market view that there's still slack in the economy and any increases in interest rates in the future will be gradual," currency strategist Lee Hardman with Bank of Tokyo-Mitsubishi UFJ Ltd. in London told the news source on Thursday. "This may be negative for the dollar in the near term. The pound is outperforming and our view is that the Bank of England will be the first to raise rates."
The dollar dropped about 0.3 percent in early trading against the 18-nation monetary unit, one day after edging down almost 0.1 percent against its cross-Atlantic rival.
Reuters reports the Yellen commentary came on Wednesday, which marked her second public speech since becoming chair of the Fed earlier this year.
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