Dollar continues to fall on Bernanke's comments
The dollar maintained its slide against the euro and yen this morning as the markets continued to react to the comments of Federal Reserve chairman Ben Bernanke.
The dollar stood at 1.2631 to the euro, 1.8475 to the pound and the greenback was worth 116.894 Japanese yen this morning.
Mr Bernanke told Congress on Wednesday that the growth in the US economy is moderating and this "should help to limit inflation pressures over time", therefore suggesting an end to the cycle of interest rate rises.
"The dollar remains top-heavy after Bernanke's less hawkish remarks on inflation," said Harry Ida, senior strategist at Thomson Financial's IFR Forex Watch, speaking to XFN Asia. Adding to the argument that two years of interest rate increases are slowing growth in the economy, it is believed that reports due to be published next week may show declines in US home sales and consumer confidence.
"The Fed is closer to ending its tightening cycle on concern over the slowing economy," Jun Kitazawa, at BBH Investment Services, told Bloomberg.