Earlier today the Dollar remained pressured against the Euro ahead of Federal Reserve Chairman Ben S. Bernanke addressing Congress. Speculation ahead of the address is that the U.S. has not recovered fast enough for the Fed to reduce monetary stimulus.
It seems to me that Bernanke isn't hawkish, and it's likely then that he will err on the side of caution and continue with the Fed's monetary easing policy. He testifies today to the Joint Economic Committee. The Federal Open Market Committee (FOMC) will then also release minutes of its last policy meeting later in the day.
The Market seems likely then to respond to Bernanke's remarks by selling the Dollar.
The Fed has been purchasing $85 billion a month in Treasury and mortgage debt in an effort to drive borrowing costs down and also to drive growth.
The purchases should continue mainly because markets indicators point to improving financial conditions and that purchases could be adjusted depending on how the economy changes.
Any U.S. pullback from monetary easing is likely to trigger a rise in bond yields according to South Korea's central bank chief, Kim Choong Soo.
"If the U.S. begins to exit from quantitative easing policies, the world will be facing interest-rate risks" Soo said to various heads of banks today in Seoul.
The Market seems likely then to respond to Bernanke's remarks by selling the Dollar.
The Fed has been purchasing $85 billion a month in Treasury and mortgage debt in an effort to drive borrowing costs down and also to drive growth.
The purchases should continue mainly because markets indicators point to improving financial conditions and that purchases could be adjusted depending on how the economy changes.
Any U.S. pullback from monetary easing is likely to trigger a rise in bond yields according to South Korea's central bank chief, Kim Choong Soo.
"If the U.S. begins to exit from quantitative easing policies, the world will be facing interest-rate risks" Soo said to various heads of banks today in Seoul.
The Dollar earlier traded at $1.2910 per Euro and at 102.61 Yen. The Yen slipped 0.2% to 132.48 per Euro.
The Yen's decline versus the Euro can mainly be attributed to Bank of Japan (BOJ) policy makers having retained their monetary-base target.
At the end of its policy meeting the BOJ today confirmed a plan to double the monetary base over the next two years. They will expand the supply of money in the economy by 60 trillion Yen ($585 billion) to 70 trillion Yen a year.
The Yen's decline versus the Euro can mainly be attributed to Bank of Japan (BOJ) policy makers having retained their monetary-base target.
At the end of its policy meeting the BOJ today confirmed a plan to double the monetary base over the next two years. They will expand the supply of money in the economy by 60 trillion Yen ($585 billion) to 70 trillion Yen a year.
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