The US Dollar Index weakened by 0.3 percent yesterday as markets discount the dovish statement made by the US Federal Reserve Chair Janet Yellen who commented on the need for stabilization of foreign economies and its markets. She also stated that further appreciation of the American currency would depress inflation and exports thereby hurting the manufacturing sector of the nation.
Moreover, America’s housing sector which makes a larger contribution to the US output needs a boost. Furthermore, the US policymaker was skeptical that the recent rise in core inflation will prove durable. All of the above factors kept the American currency a bit pressurized. US Dollar Index made an intraday low of 94.56 and closed at 94.82 on Wednesday.