Dollar slips

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SINGAPORE: The dollar hit a 15-month low against the yen on Thursday after comments from Federal Reserve Chair Janet Yellen gave investors no reason to change their minds that the next rate hike will be a long time coming.

Sticking largely to the script, Yellen made clear on Wednesday that the central bank remained on a path of 'gradual' policy tightening. Yet, she also highlighted growing risks facing the economy.

That gave currency investors the green light to continue the current trading theme - buy the safe-haven yen. As a result, the dollar slid below 113.00 yen for the first time since November 2014 and hit a 15-month low of 112.515 yen JPY=.

The dollar later pared some of its losses and was last trading at 112.97 yen, down 0.3 percent on the day.

"The idea that you will be okay if you buy the dollar since the United States alone will be raising interest rates, is becoming difficult to justify," said Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation in Singapore. The greenback hit a 3-1/2-month low against a basket of six major currencies. The dollar index touched a low of 95.508 at one point, its lowest level since Oct. 22, and was last trading at 95.812.