Dollar index minimum of 5 weeks in diminished rate hike bets - Forex ...

Investing.com - The dollar fell to five-week lows against a basket of major currencies on Wednesday as markets continued to adapt in the short term to lower expectations of a rate hike by the Federal Reserve.The US dollar index, which measures the strength of the greenback against a trade-weighted basket of six major currencies, was down 0.11% to 93.75, the lowest level since May 5.Markets have pushed back expectations on the timing of the next rate hike by the US central bank after the dismal labor report on Friday May, which showed the economy created only 38,000 jobs last month, the smallest increase since September 2010.A speech by Fed Chairman Janet Yellen said on Monday that interest rates will not rise until the uncertainty about the economic outlook is resolved.Yellen said he expects economic recovery to continue, but gave no indication of the date of an upcoming rate increase.The Fed raised interest rates for the first time in nearly a decade in December.The dollar fell against the yen, with USD / JPY down 0.33% to 107.00 after falling as low as 106.72 earlier.The dollar regained some ground after data showed that imports from China grew more than expected in May, adding to hopes that the economy is stabilizing.The euro was trading near the highs of five weeks, with EUR / USD to 1.1369.Sterling fell, with GBP / USD easing 0.11% to 1.4532.The pound ended the previous session with gains of 0.7% after opinion polls showing Stay campaign with an edge over the campaign ahead Leaving June 23 referendum European Union.