Summary Dollar traded mixed as investors awaited Fed Reserve Chair Janet Yellen's speech on monetary policy.
NEW YORK (AFP) - The dollar traded mixed Monday as investors awaited Federal Reserve Chair Janet Yellen s speech on monetary policy, hoping to glean insight into the path of interest rate increases.
Investors were expected to focus on Yellen s remarks Tuesday to the Economic Club of New York to see if she sheds light on when the central bank will raise rates for a second time.
With the economy exhibiting patches of weakness, analysts are penciling in about two increases this year, after the Fed lifted rates in December for the first time in nine years.
US Commerce Department data showed lackluster consumer spending in February and the Fed s preferred inflation measure rose 1.0 percent year-over-year, down from 1.2 percent in January.
Stripping out volatile food and energy prices, core inflation was up 1.7 percent from a year ago, near the Fed s 2.0 percent target.
"A core rate of 1.7 percent will leave many hawks at the Fed concerned they are falling behind an upward inflationary trend," said Jay Morelock of FTN Financial.
The dollar slipped against the euro, trading at $1.1196 per euro around 2100 GMT, down from $1.1166 at the same time Friday. The greenback rose to 113.45 yen from 113.14 yen on Friday.
The Federal Open Market Committee, the Fed s policy arm, holds its next meeting on April 26-27, though some analysts say the FOMC would be more likely to raise rates at the June 14-15 meeting.
Kathy Lien of BK Asset Management said that Friday s March labor market report could lift the dollar if earnings rebound after last month s surprise decline.
"However if Yellen remains dovish and the payrolls report is weak then investors will punish the dollar and rule out any chance of June tightening," Lien said.
