Dollar rebounds as hawkish Yellen prevails

New York

THE US dollar rallied to a two-week high against the yen and Swiss franc last Friday in volatile trading, as investors focused on Federal Reserve chairwoman Janet Yellen's comments on an improving US economy that bolstered the case for an interest rate increase.

The US currency had given up gains soon after Ms Yellen spoke to central bankers, as she gave no indication that a rate hike was imminent. The dollar, however, then rose as traders re-assessed her words and took into account hawkish remarks from Fed vice-chairman Stanley Fischer. Mr Fischer said on CNBC TV that the Fed was still on track to raise rates this year.