US Treasury Sec. Yellen: US policy, risk aversion are factors favoring dollar strength

When asked about the dollar strength, US Treasury Secretary Janet Yellen said that they were committed to market-determined exchange rates, as reported by Reuters. “Tighter US monetary policy and risk aversion are factors favoring the dollar strength,” Yellen added.

Additional takeaways

“Russian central bank assets are substantial, US and others have blocked about $300 billion.”

“It would not be legal now in the US for the government to seize those assets.”

“There really are a number of issues, conversations are just starting on reconstruction financing.”

“Inflation is a concern in the US and many other parts of the world.”

“We understood that we could not shield ourselves entirely from the economic consequences of Russian sanctions.”

“EU timeline for ending Russian oil imports gives ample time to ensure it is done in an orderly way.”

“Shutting off oil and gas revenues for Russia, we would like to do what we could to diminish those.”

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen rising 0.23% on a daily basis at 103.53.