EUR/USD extended gains on Wednesday from the previous session as currency traders continued to digest extremely dovish comments from Janet Yellen, which provided strong indications that the Federal Reserve could push back the timing of its next interest rate hike beyond the first half of the year. With one trading day left in March, the dollar is on pace for its worst monthly performance in more than five years. As a result, the euro has surged more than 4% against its American counterpart during that span and is up sharply from its level of 1.0860 at the start of the year. Investors continued to react to Yellen's remarks on Tuesday, when the Fed chair emphasized that any rate hikes from the Fed will likely take place in a gradual manner unless considerable global and financial risks recede in the near-term future. Yellen's comments contradict the hawkish positions of four of her colleagues on the Federal Open Market Committee (FOMC), which suggested last week that the U.S. Central Bank should approve up to three rate hikes this year. While Yellen acknowledged that the U.S. economy has demonstrated remarkable resiliency as the labor market continues to flourish, she expressed significant concern regarding soft manufacturing and export levels, as well as declining capital expenditures. Notably, Yellen cited research from Federal Reserve of Chicago president Charles Evans on the policy direction that should be undertaken by the Fed in periods of increased uncertainty when short-term rates remain low. On Wednesday, Evans reiterated that he expects the Fed to raise interest rates as much as two times this year, with an April rate hike likely off the table. Much like Yellen, Evans is cautious of lifting rates too quickly as inflation in the euro zone and elsewhere remains stubbornly low.