Dollar set for biggest monthly fall in five years

Fed Chair Janet Yellen's cautious words in New York helped the stock market...

Dollar set for biggest monthly fall in five years

Federal Reserve Chair Janet Yellen addresses an Economic Club of New York luncheon, Tuesday, March 29, 2016, in New York. Picture by: Mary Altaffer / AP/Press Association Images

The value of the US dollar has taken another hit following comments from Federal Reserve Chair Janet Yellen last night.

According to Bloomberg's dollar index, the dollar dropped 0.4% to 112.27 yen and 0.3% to $1.1321 per euro, falling in value against all 16 of its major counterparts.

The greenback will have lost 3.7% this month, making for a second straight monthly drop and its biggest fall since September 2010. Yellen warned that global economic and financial uncertainties are likely to result in the delay of US interest-rate increases.

She told the Economic Club of New York:

"Given the risks to the outlook, I consider it appropriate for the committee to proceed cautiously in adjusting policy".

Her calls for a slow approach caused global stocks to rally.

US oil was up for the first time in five days, US equities erased their losses this year and emerging market currencies were propelled to their best month since 1998.

Bruno Verstraete of Lakefield Partners told CNBC on Wednesday:

"The good aspect of Yellen yesterday is the dollar. Dollar going down is clearly good for global growth, it's good for commodities, and it's good for emerging markets where the growing consumers are... That could pull the global growth up".