Futures Market News
Dollar gets boost from Bernanke testimony
Jul 17, 2012 02:50 PM
Central bank chair Ben Bernanke told a U.S. senate committee on Tuesday that the bank is prepared to intervene and help spur the globe's largest economy, but after he did not commit to any measures the world's reserve currency gained in value, according to Reuters.
Conjecture had been growing about Bernanke indicating when a third round of asset purchasing would occur, which was helped by economic data indicating the nation has encountered a rough patch as it attempts to recover from the Great Recession.
"My view remains that the Fed will be reluctant to act aggressively as other central banks across the world pick up the easing torch and use it to stoke the fire of global demand," global currency strategist Andrew Busch with BMO Capital Markets in Chicago told Reuters.
Europe, the U.K., China and Brazil each have noted they are embarking on some sort of easing policy, demonstrating a global slowdown.
The U.S. dollar surged in value against the common currency of the European Union in response to Bernanke's non-committal responses, according to The Wall Street Journal. He is scheduled to resume testimony on Wednesday.
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