The dollar slid against other major currencies on Wednesday, as investors wrote off the possibility of a rate hike in the near future. The pound reached a session high against the greenback after new data from the U.K. showed industrial output increased at the fastest pace in four years in April.
Immediately after the data was released, GBP/USD reached a high of 1.4579 before settling at 1.4531.
Sentiment on the dollar waned after Fed Chair Janet Yellen indicated that the central bank would not raise rates until uncertainties in the economic outlook were resolved. Yellen maintains that she expects the economy to continue its recovery, but offered no timetable for the next rate hike. Yellen’s remarks combined with the dismal jobs report released on Friday have diminished speculation of a near-term rate hike.
The euro advanced 0.11% against the dollar, at 1.13708. The dollar was weaker against the Swiss franc, with USD/CHF falling 0.23% to 0.9632.
A report from the Office for National Statistics showed a 2% increase in industrial production in April, the largest increase since July 2012.
Manufacturing output was also up 2.5%, up from a 0.1% increase in March.
The pharmaceuticals sector saw major gains, with an 8.6% increase.
The pound’s gains were limited, as ongoing concerns over a potential Brexit put a ceiling on the currency’s advancement.
Elsewhere, the Australian dollar was lower against the dollar, with AUD/USD at 0.7443. The New Zealand Dollar advanced against the greenback, with NZA/US at 0.6989.
The dollar was weak against the Canadian dollar, with USD/CAD at 1.2714, its lowest level since May 4. The commodity-supported loonie benefited from rising oil prices. Oil is up for the third consecutive day as investors await inventory data. Supply data is speculated to show a bigger-than-expected dip in U.S. crude inventories.
The U.S. dollar index was down 0.11% on Wednesday to 93.75, its lowest point since May 5.