The US dollar was weaker against most major currencies today after Federal Reserve Chairman Ben Bernanke reiterated in yesterday’s speech his pledge to keep the monetary policy accommodative. The greenback managed to outperform the Japanese yen, which was undermined by speculations about an intervention from the Bank of Japan.
The Chairman explained his view:
We expect the economy to continue to grow. Our concern is not really a recession. Our concern is that growth will continue but at a pace thatâs insufficient to put people back to work.
Bernanke confirmed that the policy will likely remain accommodative even after the economy will be on track to growth. It is apparent that the Fed is serious about bolstering the economy of the United States. And as long as Fed’s current stance remains, the dollar will feel downside pressure.
EUR/USD was up from 1.2886 to 1.2930 and GBP/USD advanced from 1.6129 to 1.6149 as of 18:15 GMT today. USD/JPY climbed from 77.97 to the high of 78.20 before trading at 78.08.
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