The dollar is still trading near its record low value against the euro today, but it has managed to recover somewhat from the yesterdays fall after the oil prices corrected on the increased oil inventories in U.S.
Fed chairman Ben Bernankes testimony to the U.S. congress showed that there are possibilities for the housing and employment markets to weaken even further and that the risks for the financial markets and banking sector still remain high.
This testimony added more confidence to the investors that the interest rates in U.S. will be lowered again in March and most probably by 50 basis points.
ING Financial Markets is forecasting a rate cut by 50 basis points during the next FOMC meeting on March 18. This rate cut will continue to pressure on the U.S. currency, depreciating it against currencies with the higher benchmark rates.
Today EUR/USD slid down from 1.5119 to 1.5092 after the yesterdays massive gain of more than 136 pips on this currency pair.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.
