Yellen's speech cited persistent labor market slack but noted faster recovery in the sector could accelerate the timing of a Fed interest rate hike.» Read More
The yen was near a five-month peak against the euro as banking woes in Portugal drove equities lower and lifted demand for the safe-haven currency.
The yen rose as investors sought shelter from economic stress in Europe.
The BoE left interest rates and its asset purchase target unchanged amid concerns that a strong sterling is choking off an economic recovery.
The euro traded marginally stronger, with traders looking to a speech by ECB and minutes from the Fed meeting today.
By Ian Chua and Masayuki Kitano. SYDNEY/ SINGAPORE, July 9- The New Zealand dollar hovered near a three-year high on Wednesday, buoyed by the prospect of a sovereign rating upgrade, while the U.S. dollar held steady ahead of minutes of the Federal Reserve's latest policy meeting.
SYDNEY, July 9- The New Zealand dollar held on to gains early on Wednesday, having scaled a fresh three-year peak on the prospect of a sovereign rating upgrade, contrasting with other major currencies which shuffled in familiar ranges.
The outlook for central bank policymaking dominated attention in major currency markets on Tuesday, with the dollar rally already fading.
German industrial output fell 1.8 percent on the month in May, its biggest drop in more than two years, surprising most analysts.
The dollar struggled to make more headway after a jump in U.S. job creation left stock markets in optimistic mood.
The dollar was broadly bid on Thursday by a stronger-than-expected U.S. nonfarm payrolls report for June.
Milk prices may unravel the popular carry trade of using currencies such as the yen or U.S. dollar to buy higher-yielding New Zealand dollar assets.
The report boded well for Thursday's U.S. nonfarm payrolls report, and provided a boost to the dollar.
A UK factory survey adds to evidence that Britain's consumer-led recovery is becoming more balanced and sustainable.
The euro held near a six-week high against the dollar on Tuesday, threatening a break past $1.37.
The dollar looked set for a second week of losses on Friday, after a string of poor U.S. economic data that gave investors no reason to expect higher interest rates soon.
*New Zealand dollar at three-year high, near post-float peak. LONDON, June 27- The dollar looked set for a second week of losses on Friday, after poor U.S. economic data left investors with no reason to expect interest rates will rise anytime soon. The New Zealand dollar hovered at its highest in nearly three years.
*New Zealand dollar hits three-year highs, eyes post-float peak. LONDON, June 27- The dollar looked set for a second week of losses on Friday, reduced to more than one-month low against the yen after a string of poor U.S. economic data that gave investors no reason to expect higher interest rates soon.
*New Zealand dollar hits three-year highs, eyes post-float peak. TOKYO/ SYDNEY, June 27- The dollar was poised to end the week with a whimper, dropping to a more than one-month low against the yen on Friday after downbeat U.S. spending data gave investors no reason to hope for higher U.S. rates anytime soon.
Sterling rallied on Thursday after new measures to cool the UK housing market failed to dampen rate rise expectations.
The pound saw losses after comments from the BoE cooled expectations for an interest rate hike, while its G3 counterparts drifted in well-worn ranges.