US$ languishes as traders look to Yellen for direction

London

THE US dollar languished close to a 3 ½ month low against a basket of major currencies on Wednesday, as traders waited for US interest rate guidance from Federal Reserve chair Janet Yellen.

The currency has shed over 3 per cent over the past two weeks as expectations of a 2016 rate rise have all but vanished. Worries over sliding commodity prices, a slowing China and the health of European banks have also dampened US dollar demand in favour of safe-haven assets such as the yen.