The US dollar slipped against a basket of currencies on Thursday after Federal Reserve Chair Janet Yellen said low interest rates are needed to support the US economy even though such a policy stand hurts its currency. Dollar weakness helped propel sterling to its highest against the US currency since late 2009 as investors continued to price in expectations for a Bank of England rate hike in the first quarter of 2015 after strong jobs and wages data on Wednesday.
The dollar index dipped 0.1 percent to 79.700 after hitting a session low of 79.581. The greenback dipped 0.1 percent versus the euro at $1.3821 and was little changed against the yen at 102.22 yen. Sterling was up 0.1 percent at $1.6806, after hitting its highest since late 2009 at $1.6842.