The U.S. dollar on Thursday performed strongly on foreign exchange markets as a consequence of the U.S. Federal Reserve chairman noting it is aiming to close monetary stimulus measures by the end of this year, Bloomberg reports.
The world's reserve currency notched strong advances against major counterparts such as the Australian dollar and the Turkish lira. Measures that are implemented to spur economic development also distil down the value of monetary units.
"If the incoming data are broadly consistent with this forecast, the committee currently anticipates that it would be appropriate to moderate the pace of purchases later this year," Ben Bernanke told a press conference on Wednesday in Washington once the Federal Open Market Committee adjourned two days of meetings. Should follow-up reports comply with what the body anticipates, "we will continue to reduce the pace of purchases in measured steps through the first half of next year, ending purchases around mid-year."
President James Bullard of the St. Louis Federal Reserve noted the importance of defending its inflation goal following inflation readings that have been low as of late, the FOMC statement noted.
Treasury yields soared to their top rate in almost 24 months after Bernanke spoke, according to Reuters.
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