Dollar rallies as risk appetite dims, after Yellen's comments on rates

By Reuters2 days ago

Reuters. FILE PHOTO: A U.S. dollar note is seen in front of a stock graph in this picture illustration

By Gertrude Chavez-Dreyfuss

AD

NEW YORK (Reuters) - The dollar hit a two-week high on Tuesday, as risk appetite faded amid a sell-off in stocks, with U.S. Treasury Secretary Janet Yellen's comments saying interest rates may need to rise to prevent the American economy from overheating also supporting the greenback.

Yellen, in prepared remarks on Tuesday, made the comment as more of U.S. President Joe Biden's economic investment programs come on line. She did say that the additional spending was small compared to the relative size of the economy.

The dollar's safe-haven appeal received a further boost as the Nasdaq fell more than 2%, the S&P more than 1% and the Dow Jones Industrial Average a less steep 0.3% , and as Treasury yields declined. [.N][US/]

Continue read on investing.com