Business

The U.S. Dollar Decrease.
by Milota Sidorova

Ben Bernanke the Chief of American Fed spoke in favor to stabilize declining U.S. dollar in New York Economic Club. This man despite being the head of private central bank is having a powerful, influential word when it comes to business. His comments boosted or, on the contrary deepened either the increase or decrease on the American Wall Street several times. Monday performance got bit unclear message. Although Bernanke suggested Fed won’t raise near zero loan rates, he didn’t say Fed would join other central banks for a direct intervene to the market. He simply tried to boost the weak currency without taking any action. As expected, market reacted to his word! s. First of all, the dollar strengthened in Monday’s trading, but his promise to keep interest rates low for extended time period, traders slowed down and the green paper posted double digit declines against the most of the world’s currencies. According economists low rates are necessary to encourage consumer’s and business spending to refresh the economy, but it can’t entirely cover the national currency. The inflation is growing. Bernanke spoke to Congress and the White House calling for decrease the budget deficit that summed over $1.42 trillion. The deficit size along with the national debt size is a factor influencing dollar’s performance. Well, it is not Bernanke himself worrying about the dollar. China, the biggest money lender, the third largest export market for the country as usually expressed concerns about their stakes. According the ICE Dollar Index, the currency has dropped 16.7 percent in general since March. It has fallen 19.5! percent against Canadian dollar for the same period. Euro gai! ned 18.4 percent against the dollar, such as Japanese yen that grew 12.2 percent since April.

related story (sgx15925): http://news.yahoo.com/s/ap/20091116/ap_on_bi_ge/us_bernanke;...

by Milota Sidorova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 3:19 PM