The U.S. dollar hit 129.43 yen on Wednesday for the first time since April 2002 earlier in the session, before easing to 127.79 yen, down 0.8%
Gold is trading below $1,998.10, a more than one-month high hit on Monday, as the dollar index scaled an over two-year peak on elevated US Treasury yields
Lagarde said there was no clear timeframe for when rates would start to rise, adding it could be weeks or even several months after the end of stimulus
The yen led losers against the dollar with the Japanese unit weakening 0.8% to cross the 126 yen to the dollar level for the first time since May 2002.
The dollar's gains have been most striking against the yen
For the previous reporting week ended March 25, the overall reserves had slid by USD 2.03 billion to USD 617.648 billion
Russia said Wednesday that it made a debt payment in rubles this week, a move that may not be accepted by Russia's foreign debtholders and could put the country on a path to an historic default
Gold prices were subdued on Wednesday in choppy trade as a robust dollar and the prospect the Federal Reserve could raise interest rates aggressively kept non-yielding bullion near a one-week low
Commodity currencies rallied in choppy trading on Tuesday led by the Australian dollar, boosted by the prospect of policy tightening by the Reserve Bank of Australia (RBA), while the euro fell.
By Caroline Valetkevitch
A stronger dollar makes gold less attractive for other currency holders, while higher yields increase the opportunity cost of holding non-paying bullion
The value of the country's gold reserves increased by $1.230 billion to $43.241 billion
The dollar index, which measures the greenback against a basket of six peer currencies, was down 0.57% at 97.861 at 2:20 p.m. Eastern Daylight Time, having earlier touched its lowest level since March
Spot silver XAG= and platinum XPT= both rose 0.5% to $24.86 per ounce and $987.39 respectively
The local unit finally settled at 75.94 against the dollar, down 21 paise from the previous close
The ruble appreciated to 83 to the dollar intraday on Tuesday against a record low of 139 on March 7.
Spot gold XAU= fell 1.08% to $1,936.30 per ounce by 10:56 a.m. ET (1456 GMT), U.S. gold futures GCv1 declined 0.8% to $1,939.10
The dollar index fell 0.112%, with the euro up 0.18% to $1.1016
The dollar index rose 0.291%, with the euro down 0.46% to $1.0976.
Oil Prices dipped on Tuesday as the European Union seems unlikely to agree to a ban on Russian oil which would also likely weigh on the euro