Dollar Falls vs. Euro on Stimulus Speculations

The US dollar fell against the euro today on speculations that the Federal Reserve will maintain its stimulus program. The currency edged higher versus the Great Britain pound and the Japanese yen.
James Bullard, the President of the Federal Reserve Bank of St. Louis, said the Fed should continue to purchase bonds to stimulate the economy. William Dudley, the President of the Federal Reserve Bank of New York, said that policy makers were too optimistic previously about prospects of the US economy. Fed Chairman Ben Bernanke will speak tomorrow.
The dollar was rising against the euro on speculations about an end to quantitative easing and reversed its movement after talks changed. At the same time, the greenback rallied versus the sterling and the yen as these currencies had their own problems.
EUR/USD was up from 1.2880 to 1.2921 as of 22:37 GMT today. GBP/USD dropped from 1.5253 to 1.5160, touching the low of 1.5110, and USD/JPY went up from 102.25 to 102.38 (its daily high was at 102.87).

If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *