11.07.201401:12:59UTC+00US dollar on set for worst week since April

The US dollar is slated for its largest weekly fall against the Japanese yen since April before Federal Reserve Chair Janet Yellen delivers her statements to lawmakers next week and investors cut down bets the central bank would increase interest rates.

Minutes of the Fed’s June meeting failed to give further insight on the timing of interest rate hikes and record-low volatility prodded demand for higher-yielding assets.

“The Fed is on the cautionary side despite data improving. With the current environment, where volatility remains low, the trend of carry trades remains in vogue and therefore you can see, to a certain extent, the dollar is underperforming,” said Roy Teo, Currency Strategist at ABN Amro Bank NV.

The dollar was slightly changed at ¥101.32 at 12:19 p.m. in Tokyo, sliding 0.7% this week, the most since the period through April 11. The greenback traded at $1.3604 per euro, previously $1.3609.