The U.S. dollar index weakened significantly in the wake of Yellen's comments, which is also a bullish development for the precious metals markets. In her speech in New York, Yellen said the U.S. economic growth pace has weakened a bit and the pace of interest rate increases by the Fed will be only gradual. She said global developments and slow world economic growth also pose ongoing risks for the U.S. economy. Yellen also said the FOMC is not on a preset course of monetary policy tightening. Just recently, many market watchers were thinking the Fed might raise interest rates as soon as next month. However, Yellen’s remarks Tuesday threw cold water on that notion.
Dallas Federal Reserve President Robert Kaplan also echoed Yellen on Tuesday, saying the central bank should proceed gradually and cautiously in raising rates.
San Francisco Fed President John Williams, a close ally of Yellen who is usually among the core of decision-makers, said on Tuesday that the U.S. central bank should stay on track with its tightening plan.
The Conference Board Consumer Confidence Index®, which had decreased in February, improved in March. The Index now stands at 96.2 (1985=100), up from 94.0 in February.
U.S. crude futures rebounded in early Asian trade on Wednesday, buoyed by a forecast of a less than expected build in crude oil stockpiles last week, although concern over an oversupplied market and a stronger dollar put a ceiling on gains.
Oil prices fell about 3 percent in the previous session after Kuwait and Saudi Arabia said they would resume production at the jointly operated 300,000-barrel-per-day Khafji field even as oil output is supposed to be capped.
U.S. crude CLc1 rose 37 cents to $38.65 a barrel as of 2339 GMT (07:00 p.m. EDT) after settling down$1.11 in the previous session.
Brent futures LCOc1 had yet to start trading.
U.S. crude stocks rose last week by 2.6 million barr
els to 534.4 million barrels data from industry group, the American Petroleum Institute, showed on Tuesday.
Reference: Reuters, Kitco
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