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NEW YORK, May 27 (Xinhua) -- The U.S. dollar rallied against other major currencies on Friday as after the Federal Reserve Chair said an interest rate hike is appropriate in the coming months.

"It's appropriate -- and I've said this in the past -- for the Fed to gradually and cautiously increase our overnight interest rate over time," Yellen said on Friday at Harvard University, adding that "Probably in the coming months such a move would be appropriate."

Yellen's words bolstered market expectation for an interest rate increase as early as June. The dollar index, which measures the greenback against six major peers, was up 0.60 percent at 95.738 in late trading.

On the economic front, U.S. real gross domestic product (GDP) rose at an annual rate of 0.8 percent in the first quarter of 2016, slightly below market expectations, according to the second estimate released by the Commerce Department Friday.

In late New York trading, the euro fell to 1.1114 dollars from 1.1190 dollars of the previous session, and the British pound decreased to 1.4608 dollars from 1.4656 dollars. The Australian dollar went down to 0.7178 dollars from 0.7218 dollars.

The dollar bought 110.43 Japanese yen, higher than 109.70 yen of the previous session. The dollar climbed to 0.9944 Swiss francs from 0.9893 Swiss francs, and it inched up to 1.3038 Canadian dollars from 1.2984 Canadian dollars.

WELLINGTON, May 26 (Xinhua) -- New Zealand's science and research community Thursday welcomed one of the most significant funding increases in recent years, as the government claimed it would encourage entrepreneurship, skills and economic growth.

In its annual Budget, the government announced that Innovative New Zealand, a series of 25 initiatives, would see 761.4 million NZ dollars (509.68 million U.S. dollars) invested over the next four years in science, skills, tertiary education and regional development initiatives.

"These will help diversify the economy, and support more jobs and higher wages for New Zealanders in the decade ahead," Economic Development Minister Steven Joyce said in a statement.

The package included 410.5 million NZ dollars (275.07 million U.S. dollars) for science and innovation, taking the government's annual science investment to 1.6 billion NZ dollars (1.07 billion U.S. dollars) by 2020.

"We have been making very good progress as a country since the Global Financial Crisis. We have been the world's seventh fastest growing developed economy over the past five years," Joyce said.

"We have seen over 200,000 jobs created in the last three years, record numbers of highly-skilled graduates, and major growth in new and emerging high-tech sectors like the software services sector," he said.

"Now we need to continue that momentum. This package of initiatives will build on the progress we are making and strengthen the diversification that is occurring across the New Zealand economy."

The Royal Society of New Zealand science academy welcomed the investment as a contribution to the long-term goal of increasing investment in scientific research and innovation to 0.8 percent of gross domestic product.

"New Zealand needs to retain more of our excellent researchers and providing more opportunities for funding and international collaboration will contribute significantly to allowing us to do that," chief executive Dr Andrew Cleland said in a statement.

Dr Warren Parker, chair of the Science New Zealand organization, said the substantial increase in public funding would strengthen the connection between science in New Zealand and its practical application.

"Science-based innovation is at the heart of opportunity for economic and social prosperity, and critical to protecting and enhancing our environmental wealth. It enables higher value, higher paid jobs and creates the wealth we need as a nation, to re-invest into our society for the future," Parker said in a statement.

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