FX round-up: Dollar up after Bernanke comments
The dollar rose against major currencies after Federal Reserve chief Ben Bernanke said that while ‘accommodative policies will likely be warranted for an extended period’ the Fed will need to tighten monetary policy ‘to prevent the emergence of an inflation problem down the road.’The dollar index, which measures the US currency against a basket of six others, was up 0.6% to 76.430 on Friday.
The euro fell slightly to $1.4705 from $1.4785 late Thursday. The dollar rose to 89.85 yen from 88.43 yen the previous session.
On Wednesday the dollar fell to a 14 month low against a basket of rivals on concern about a lack of support for the declining dollar.
However many traders jumped on Bernanke's assertion that the Fed will need to tighten monetary policy, pushing the dollar higher.
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