Fed's Yellen expects drag of stronger dollar on U.S. exports to continue

SAN FRANCISCO (Reuters) - Federal Reserve Chair Janet Yellen said on Wednesday that she expects the stronger dollar, whose rise in part is fueled by expectations the Fed will gradually raise interest rates, to continue to drag on U.S. exports.

In response to questions from the audience at a Commonwealth Club of California event in San Francisco, Yellen also said that while the rise in equities also can be partly attributed to expectations of future Fed rate hikes, investors should take uncertainty into account, given that unexpected big rate hikes or cuts could affect stock valuations.

(Reporting by Ann Saphir; Editing by Meredith Mazzilli)