Dollar slips

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TOKYO: The dollar dipped against its peers on Thursday after Federal Reserve Chair Janet Yellen did not sound as hawkish as many had anticipated, while the Canadian dollar stood near a 13-month high after its country´s central bank hiked interest rates for the first time since 2010.

The U.S. economy is healthy enough for the Fed to raise rates and begin winding down its massive bond portfolio, though low inflation may leave the central bank with diminished leeway, Yellen said at her semiannual appearance before Congress on Wednesday. The dollar slipped as Yellen´s comments sparked a significant decline in U.S. Treasury yields. The dollar index against a basket of major currencies was down 0.15 percent at 95.606 after retreating to as low as 95.511 the previous day, its weakest in 12 days.

"The overall assessment is that Yellen sounded dovish, but perhaps this was a result of her attempt to assuage too many concerns at once," said Bart Wakabayashi, branch manager for State Street Bank and Trust in Tokyo.

"Our data suggests that U.S. inflation is actually picking up again. The Fed appears to still be in a position to continue hiking rates. "Market attention turned to U.S. inflation data and its potential impact on Fed policy.”