The US dollar flipped into the black after the head of the Federal Reserve warned it would be “unwise” to wait too long before continuing to tighten monetary policy.

The greenback was recently up 0.1 per cent against a basket of six major global currencies, shedding a loss of as much as 0.3 per cent earlier in the day.

Fed chair Janet Yellen said in prepared remarks to the US Senate that “waiting too long to remove accommodation would be unwise, potentially requiring the FOMC to eventually raise rates rapidly, which could risk disrupting financial markets and pushing the economy into recession”.

The greenback was recently up 0.3 per cent against the Japanese yen, 0.1 per cent against the euro and 0.5 per cent against the UK pound.

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