Source: ForexYard
The dollar fell and the euro hit its highest point in almost 4 weeks after Federal Reserve Chairman Ben Bernanke voiced some doubts regarding the pace of job creation in the United States, this could perhaps mean that the central bank could still resort to a new round of bond-buying to support the economy.
Not a good day for the Greenback as the world’s biggest currency weakened against the Euro and just about made a gain over the Japanese Yen. The Euro corrected its losses against the Dollar to trade at $1.3329, from a low of $1.3190 and versus $1.3265 late Friday Afternoon.
In his speech, Federal Reserve Chairman Ben Bernanke,warned that faster economic growth was required to ensure further declines in unemployment. Bernanke also mentioned that accommodative monetary policy is still needed to reduce unemployment in the U.S.
The Euro also strengthened against the Greenback as Germany said it may back plans to increase the debt-crisis rescue funds before a meeting at the end of the Month where all the finance ministers are due to attend.If Germany decide to increase the size of the bailout fund, it would have a positive impact on the 17- nation currency.
However, there are still growing concerns over the stability of the Euro as Spain are having problems with placing their budget in order.Spains’ Budget plan is due to be announced this coming Friday.
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