NEW! Investment Companies Centre

FX round-up: Dollar firms on Bernanke comments

News for Spread Betters

PreviousPrevious
NextNext

There's a new Investor Edition of CMC Markets' spread betting platform... and it's exclusive to DigitalLook.com users...

Get full details about Marketmaker:Investor Edition here. Advertisement

Date: Wednesday 09 Jul 2008

LONDON (ShareCast) - The dollar rose against major currencies Tuesday after Federal Reserve Chairman Ben Bernanke said the Fed will give lenders more time to find emergency loans from the central bank while it tries to crackdown on dodgy lending practices.

Bernanke said the Fed would try to extend lending facilities into next year in a bid to help iron out the troubled US financial system.

In his speech Tuesday Bernanke said, "We are currently monitoring developments in financial markets closely and considering several options, including extending the duration of our facilities for primary dealers beyond year-end."

A sharp drop in oil prices also helped the greenback Tuesday.

Otherwise, with no verbal cue from the G8 about the dollar’s weakness, nerves crept back in about the global economic outlook and the dollar lost some momentum later in the session.

The yen was little changed, with trading relatively subdued in Japan while the euro eased following Bernanke’s speech.

Sterling came under pressure on concern that Britain is heading for a recession. Britain's economic situation is "grim” and “ominous" said a report by the British Chambers of Commerce.

Digital Look have been voted
"Best Research and Information Provider"

4th Floor, Bankside House, 107 Leadenhall Street, London EC3A 4AF.
Registered in England and Wales (registered no. 3678570).