Her comments also were largely in tune with a chorus of other Fed officials who have indicated in recent weeks that policymakers could resume raising rates as soon as next month.St. Louis Fed President James Bullard was the latest voice, saying on Monday global markets appear to be “well-prepared” for a summer interest rate hike, although he did not specify a date for the policy move.The probability of a rate increase at the Federal Open Market Committee’s June 14-15 meeting rose to 34 percent from 30 percent before Yellen’s remarks, according to CME Group.
bets on a rate increase at the July 26-27 policy meeting edged up to 60 percent, more than double the estimate from a month ago.The dollar index logged a fresh two-month high of 95.940, and was last up 0.4 percent at 95.897.
The dollar rose 0.5 percent to 110.96 yen after earlier notching a fresh one-month higher of 111.03 yen.The dollar also got a lift from revised U.S. gross domestic product data for the first quarter released on Friday, that showed that growth did not slow as much as first estimated.
of Yellen’s emphasis on the labour market, the U.S. nonfarm payrolls report on Friday will attract more than the usual attention.Economists expect U.S. employers to have added 170,000 jobs in May, slightly more than they did in April, and hourly wages to show a 0.2 percent increase from the previous month.The euro wallowed around 2-1/2 month lows, edging down 0.1 percent to $1.1104.The European Central Bank will meet on Thursday, and is expected to keep interest rates on hold and reaffirm its focus on implementing its stimulus package announced in March.Crude oil futures remained just shy of the key $50 per barrel level after marking weekly gains, feeling some pressure from the stronger U.S. dollar that made it more expensive for holders of other currencies.Brent crude edged down 0.1 percent to $49.25 a barrel, after gaining 1 percent last week. U.S. crude was 0.1 percent higher at $49.36 after rising about 3 percent for the week.The dollar’s strength took a toll on spot gold, which dropped 0.8 percent to $1,202 an ounce. It plumbed a low of $1,199.60 earlier in the session, its lowest since late February.