The US dollar began to decline in volatile trading, following comments from Federal Reserve Chairman Jerome Powell that the US central bank would not raise interest rates soon and rejecting suggestions that the board might begin tapering its bond purchases in the near future.
The dollar had been aligned with rising Treasury yields, increasing for most of the session amid optimistic expectations for a new fiscal stimulus plan, but it reversed direction after Powell's remarks. Currency strategist Eric Bregar of the Exchange Bank of Canada in Toronto stated that "we received the full extent of the monetary easing comments as we expected." The dollar index fell slightly to 90.25. Since hitting its lowest level in three years last week, the dollar has risen about 1.2% in anticipation of further stimulus, which pushed the yield on ten-year bonds above one percent for the first time since March of last year.
