The dollar dropped on Friday after Federal Reserve Chair Janet Yellen
made no reference to U.S. monetary policy in her speech at the annual
central bank research conference in Jackson Hole, Wyoming.
Investors were not expecting Yellen to make a policy statement anyway, but some market participants were hoping for some signal at least on the Fed’s planned balance sheet reduction, if not on the outlook for U.S. interest rate hikes.
Instead, Yellen focussed on U.S. financial reforms. She said reforms put in place after the 2007 to 2009 crisis have strengthened the financial system without impeding economic growth, and any future changes should remain modest.
The dollar fell 0.2 percent against the yen to 109.35 yen after Yellen’s speech. The euro, meanwhile, rose 0.5 percent to $1.1851.