Commentary by Chairman Ben Bernanke of the U.S. Federal Reserve earlier this week noting the body is aiming to cease monetary stimulus measures by the end of the year spurred the U.S. dollar toward its biggest weekly gain against the monetary unit of Japan in more than two years on Friday, Bloomberg reports.
So too was the world's reserve currency heading toward gains against all of its 16 major rivals after Bernanke's Wednesday afternoon comments followed the adjournment of two days of meetings of the Federal Open Market Committee. He said continued growth of the world's largest economy is likely to prompt that sort of pullback.
"Since Bernanke's comments about the possible early stimulus exit globally investors are buying the dollar," analyst Hong Seok Chan with Daishin Economic Research Institute in Seoul told the news source on Friday. "The government could intervene if market volatility increases."
The greenback's gains against the Japanese yen this week are as high as 3.6 percent.
Stocks and bonds were harmed by the Fed chief's remarks, according to Reuters. He noted the economic progress permits the Fed to begin reducing the amount of asset purchases.
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