Dollar slips as Fed officials stay bearish; yuan higher

[NEW YORK] The US dollar edged lower against the euro and other currencies Monday as two top Federal Reserve officials took cautious stances in comments on interest rate plans.

The dollar slipped to US$1.1363 against the euro and fell to 120.02 yen, while the euro also fell against the Japanese currency, to 136.38 yen.

In a speech on Sunday Fed Vice Chair Stanley Fischer avoided predictions on when the Fed would begin to raise interest rates, leaving it possible that the first move would come next year.

He expressed confidence in the US economy but noted a "disappointing" downturn in the jobs market and, pointing to the weak global economy, said, "Considerable uncertainties also surround the outlook for economic activity." On Monday Fed board member Lael Brainard echoed that view, saying they "should not take the continued strength of domestic demand growth for granted." "Risk-management considerations counsel a stance of waiting to see," she told a meeting of economists in Washington.

Also moving up against the dollar on Monday was the tightly-managed Chinese yuan, which pushed up 0.36 per cent to 6.3238 yuan per dollar.

The Chinese currency has nearly recovered half the amount it lost to the greenback in a shock devaluation move August 11.

AFP