Investing.com - The dollar fell against a basket of the other major currencies on Friday after Federal Reserve Chair Janet Yellen said a rate hike "would likely be appropriate" this month if the economy remains on track.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.79% to 101.35 late Friday.
The index was still up 0.46% for the week, its fourth straight weekly gain after hitting a seven-week high of 102.27 on Thursday.
A rate increase had been largely priced in ahead of Yellen’s remarks following a series of hawkish comments by Fed policymakers earlier in the week, prompting some investors to take profits after a five-day rally in the greenback.
Almost 80% of traders expect a rate hike at the Fed’s March 14-15 policy meeting, compared to just over 60% on Wednesday, according to Investing.com’s Fed rate monitor tool.
The dollar was lower against the yen, with USD/JPY down 0.32% to 114.04 late Friday, after scaling a peak of 114.73 earlier, its highest since February 15. The dollar was up almost 1.7% for the week.
The euro climbed, with EUR/USD advancing 1.09% to 1.0621, after falling as low as 1.0494 overnight. It was up 0.64% for the week.
Sterling was also higher, with GBP/USD up 0.31% at 1.2303 in late trade, after plumbing a low of 1.2213 overnight, its lowest level since January 17.
In the week ahead, markets will be looking ahead to Friday’s U.S. jobs report, which could seal the deal for a Fed rate hike later this month.
Investors will also be looking to the outcome of Thursday’s European Central Bank meeting for fresh cues on the future direction of its stimulus program.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, March 6
Australia is to release data on retail sales.
The U.S. is to publish figures on factory orders.
Minneapolis Fed President Neel Kashkari is to speak.
Tuesday, March 7
The Reserve Bank of Australia is to announce its benchmark interest rate and publish a rate statement which outlines economic conditions and the factors affecting the monetary policy decision.
Germany is to release data on factory orders.
The U.K. is to release industry data on house price inflation.
The U.S. and Canada are to publish trade figures.
Wednesday, March 8
Japan is to publish revised data on fourth quarter economic growth.
China is to release data on the trade balance.
In the U.K., Chancellor Philip Hammond is to outline the government’s budget for the year.
The U.S. is to release the ADP nonfarm payroll report.
Canada is to publish data on building permits.
Thursday, March 9
China is to release data on consumer and producer price inflation.
The ECB is to announce its latest monetary policy decision. The announcement is to be followed by a press conference with President Mario Draghi.
Canada is to report on new house price inflation.
The U.S. is to publish data on unemployment claims and import prices.
Friday, March 10
The UK is to release reports on manufacturing production and the trade balance.
Canada is to publish its monthly employment report.
The U.S. is to round up the week with the closely watched report on nonfarm payrolls.