The U.S. Dollar weakened against most of its counterpart currencies -especially the Euro- due to another increase in crude oil prices resulting from the turmoil in North Africa and the Middle East.
The U.S. monetary currency remained weak as Federal Reserve Chairman Ben S. Bernanke indicated that another bout of asset purchases may not be ruled out in order to help the economy.
The Euro had a positive day as it gained in value against most other currencies on FX news which revealed a rise in producer price inflation. This fueled further speculations that the European Central Bank will discuss fiscal tightening when they meet tomorrow. Oil prices also contributed to a dramatic increase of the Swiss Franc versus the greenback. This was mostly due as investors sought the safety of the monetary unit.
The world looks at the three digit crude oil prices and can’t help but worry about inflation as well as the region’s situation, said Samarjit Shankar, managing director for the world currency exchange group at Bank of New York Mellon. He went on to state that the bearish attitude of the Federal Reserve policy makers is what’s keeping the dollar down.
Japan’s currency value diminished, losing the gains it made the day before, as Treasury profits sprang on data from the Federal Reserve reflecting an expansion in the labor market> in addition, the Beige Book business survey revealed that the U.S. economy has continued to grow at a moderate pace.
David Sumner is a freelance writer with a specialization in reporting on the world of finance. David holds a B.A. from the University of Maryland. Currently David is based in the U.S. but spends a good portion of the year traveling throughout Europe and Asia.
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