U.S. dollar declines as rate-hike expectation dims

The U.S. dollar dropped against most major currencies on Wednesday as investors lowered expectations for an interest-rate hike as early as June.

Federal Reserve Chair Janet Yellen said on Monday that further U.S. interest rate-hikes are likely on the way, but did not mention the timing of the hikes.

"If incoming data are consistent with labor market conditions strengthening and inflation making progress toward our 2-percent objective, as I expect, further gradual increases in the federal funds rate are likely to be appropriate," said Yellen in her last public speech before the Fed's June policy meeting next week.

However, she did not give a time-frame for raising interest rates like she did in May, which was interpreted by many market observers as "dovish".

The dollar index, which measures the greenback against six major peers, was down 0.25 percent at 93.591 in late trading.

In late New York trading, the euro rose to 1.1400 dollars from 1.1365 dollars of the previous session, and the British pound decreased to 1.4508 dollars from 1.4564 dollars. The Australian dollar went up to 0.7472 dollars from 0.7455 dollars.

The dollar bought 106.86 Japanese yen, lower than 107.29 yen of the previous session. The dollar fell to 0.9587 Swiss francs from 0.9650 Swiss francs, and it inched down to 1.2711 Canadian dollars from 1.2767 Canadian dollars. Enditem