Dollar steadies ahead of Yellen appearances next week

NEW YORK: The dollar stabilized Friday against other currencies as investors looked ahead to fresh comment next week from US Federal Reserve Chair Janet Yellen.

Near 2200 GMT, the euro traded at $1.3882, down slightly from the $1.3888 Thursday.

The dollar bought 101.65 yen, up from 101.55 of the Japanese currency.

The euro traded at 141.11 yen compared with 141.04.

The dollar tumbled the last two days after minutes from the Fed’s March policy meeting released Wednesday suggested there was still little chance the Fed would significantly move up its timetable for raising benchmark interest rates.

Most analysts expect such a move in late 2015.

Kathy Lien, managing director for BK Asset Management, said the dollar remains pressured although “selling subsided” at the week’s close.

She said a shift in the Fed’s stance could shake things up.

“If FOMC officials change the conversation from low rates for long to a rate hike in mid 2015, investors could be willing to buy dollars cautiously,” Lien said.

“But if the Fed’s goal is to prevent yields from rising sharply as they reduce asset purchases, why would they risk saying anything that could shock the Treasury market?”

Still, Lien will be watching public appearances by Yellen next week in Atlanta and New York, along with Monday’s release of retail sales data.

Among other currencies, the pound declined to $1.6733 from $1.6781 Thursday.

The dollar slipped to 0.8758 Swiss franc from 0.8762.