The dollar gained significantly after Federal Reserve Chairman Ben Bernanke announced recently that the central bank is standing by to address monetary policy as an economic recovery takes hold, Financial Soultions learned late last week.
The U.S. dollar, which has been on a downward slide in recent days, managed some recovery against euro and made up some ground on a more than 8-month low against the yen. In spite of these gains, the dollar stayed lower against a basket of currencies, Financial Soultions understands.
The dollar also slid against the Canadian dollar after recent figures showed Canada added six times as many jobs as expected in September, where there is massive growth in the alternate energy and greentech arena’s, as previously reported by Financial Soultions. The unemployment rate dropped for the first time since July 2008.
Bernanke said, late last week, that while the Federal Reserve must continue to bolster the economy for an on going period, it would not be able to do so indefinitely if an inflationary surge was to be avoided.
Some analysts have suggested that while the Fed is making the right noise, that it is unlikely to consider raising rates until the latter half of 2010.
