Investing.com - The dollar turned broadly higher against a basket of other major currencies on Wednesday, after Federal Reserve Chair Janet Yellen said the central bank is on track to raise interest rates "before year end."
In prepared remarks released before her testimony to the House Financial Services committee, Fed Chair Yellen said that the Fed is likely to raise rates "at some point this year." She added that the U.S. labor market healthier but "still some slack."
According to Yellen, the Greek debt crisis, as well as China's recent economic woes, "pose some risks" to U.S. growth.
At the same time, data showed that the Empire State Manufacturing Index rose to 3.86 this month from minus 1.98 the previous month, compared to expectations for a reading of 3.00.
A separate report showed that U.S. producer prices rose 0.4% in June, beating expectations for a 0.2% gain. Year-on-year, producer prices fell 0.7% in July, less than the expected 0.9% decline.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.28% at 97.08.
EUR/USD slid 0.30% to 1.0978 in cautious trade, as Greece's government on Tuesday submitted the bailout terms demanded by eurozone creditors to parliament and as Prime Minister Alexis Tsipras battled for support for the reforms from his ruling anti-austerity Syriza party.
Four pieces of legislation must be passed by the end of the day on Wednesday, including pension and sales tax reforms.
The pound slipped lower, with GBP/USD down 0.15% at 1.5613 after the U.K. Office for National Statistics said the jobless rate ticked up to 5.6% in the three months to May from 5.5% in the previous three month period. Economist had expected an unchanged reading.
It was the first increase in the unemployment rate since early 2013.
The number of people claiming unemployment benefits rose by 7,000, compared to expectations for a decline of 8,800.
Pay growth picked up in the three months to May, with average earnings including bonuses rising 3.2% from a year earlier, up from 2.7% in April. Excluding bonuses, hourly earnings rose 2.8% on a year-over-year basis, below forecasts for 3.0%.
Elsewhere, the dollar was higher against the yen and the Swiss franc, with USD/JPY up 0.34% at 123.81 and with USD/CHFclimbing 0.52% to 0.9495.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.17% at 0.7442 and with NZD/USD declining 0.60% to 0.6671.
The export-related currencies showed little reaction to data on Wednesday showing that China's gross domestic product rose by 7.0% in the second quarter, beating expectations for a growth rate of 6.9%.
Meanwhile, USD/CAD rose 0.33% to trade at 1.2770 after data showed tha Canada's manufacturing sales rose 0.1% in May, disappointing expectations for an increase of 0.4%. Manufacturing sales dropped 2.2% in April, whose figure was revised from a previously estimated 2.1% slide.