Dollar Edges Lower Ahead of Yellen Testimony

By Ira Iosebashvili Features Dow Jones Newswires

The dollar edged lower Tuesday, a day before a key monetary policy meeting in Canada and congressional testimony from Federal Reserve Chairwoman Janet Yellen.

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The Wall Street Journal Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently down 0.2% at 88.22.

Ms. Yellen, who is scheduled to appear before Congress on Wednesday and Thursday, has taken an optimistic view of the economy in recent weeks, bolstering the case for a third interest rate increase from the central bank this year. Higher rates tend to boost the dollar, as they make the currency more attractive to yield-seeking investors.

At the same time, the U.S. currency has come under pressure in recent weeks as central-bank officials in Europe and Canada signaled that they may soon begin winding down easy money policies.

Last month, Bank of Canada Gov. Stephen Poloz rekindled expectations for a rate increase in July by saying excess slack in the Canadian economy is now being absorbed "steadily" at the current pace of growth.

The euro was up 0.6% to $1.1468. The dollar was down 0.1% to Yen113.93.

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Write to Ira Iosebashvili at ira.iosebashvili@wsj.com

(END) Dow Jones Newswires

July 11, 2017 18:51 ET (22:51 GMT)