The dollar came off nearly two-week lows and rose moderately on Tuesday after new U.S. Federal Reserve chief Janet Yellen signaled there would no immediate deviation from the central bank's winding up of its massive bond purchases.
"The clear message here is that the bar to doing less tapering is very high,'' said Shaun Osborne, chief foreign exchange strategist at TD Securities in Toronto. ``It was what we expected from Yellen, though there may have been some hope she might be more dovish.''
In prepared remarks released ahead of her first appearance as Ben Bernanke's successor as Fed chair, Yellen said the U.S. labor market recovery was ``far from complete'' and said the Fed expects to continue trimming policy stimulus. She emphasized continuity.