The US Dollar Index is holding frim in trading on Thursday after the Fed Bernanke’s testimony on the monetary policy did not provide an indicator of further quantitative easing in America, boosting the the US dollar and piling more pressure on the dollar denominated oil and gold futures.
Latest Dollar Index Rate
The ICE US Dollar Index, which tracks the US dollar against six major world currencies was trading at 78.975 13.50 GMT today, from the session open of 78.794.
In a testimony before the congress on Wednesday, Bernanke said although the economy is on the mend, conditions have not improved enough for the Fed to scale back support measures.
Bernanke had expressed concerns about the American job market, while indicating the sluggish housing market market as a drag on overall economic activity.
He was still pretty glum on the US economy. He said that the fundamentals behind consumer spending were weak, access to credit remained poor, and that inflation wasn’t likely to be a problem, even with rising oil prices.
Dollar to Keep Rising?
But for now at least, there are several good reasons to hang on to the US dollar. With Europe, Britain and Japan all printing, and the US showing signs of hanging back, the US currency is all the more likely to keep rising.
“Ultimately, the key is how much recovery the US and the euro zone each can achieve. Behind profit taking in the euro overnight are concerns over the outlook of the euro zone.” said Michiyoshi Kato, senior vice president of forex sales at Mizuho Corporate Bank.
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US Dollar Index holding firm near 79 after Fed Bernanke comments
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