Monday, 19 Apr 2010

USD Correction Results from Bernanke Statements

The European single currency fell against the U.S dollar and Japan's currency Monday as short-term market players sold the common currency, which often tracks equities, as share markets across Asia weakened. The EUR traded at $1.3467 from $1.3506 and at Y123.96 from Y124.47 late Friday.

However, following the decline of the EUR, today's late trading sessions witnessed a resurgence of the 16-nation single currency. Rebounding commodity prices helped to put pressure on the USD, and help prop up the EUR.

Today's correctional movement, however, may be due more to a boom in the value of the USD following some positive market data and hawkish statements made by Federal Reserve Board Chairman Ben Bernanke.