The greenback dipped further against its major rivals following the Fed Chairman Ben Bernanke’s comments on the US economy. The euro extended its rally to 1.3553 versus the dollar, while the sterling edged higher to 1.9966.
Bernanke said the inflation is very well anchored and the cored inflation seems somewhat elevated. He also said the slowdown in housing market will be a drag on the whole economy for a longer period of time than expected. The expectations of a Fed rate cut have been lowered after a run of robust fundamental data recently. Bernanke’s dovish remarks on the housing market put more pressure on the dollar.
The dollar edged up slightly after a report showed US non-manufacturing ISM unexpectedly rose from 56 to 59.4 in May.
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