The U.S. Dollar fell against the Australian currency amidst higher demand for risk assets, which was prompted by conjectures the Federal Reserve will take additional steps in order to fuel growth. Federal Reserve Chairman Ben Bernanke concluded his semi-annual testimony before Congress and released the Beige Book which stated that the U.S. economy had grown at a “modest to moderate” pace in the month of June as Retail Sales and Manufacturing slowed down in many parts of the country. Mr. Bernanke indicated that the Fed is considering different ways to address the weakness of the nation’s economy should it become necessary to stimulate the sluggish job market. This raised speculations in the trading markets that the central bank will implement further measures to bolster economic expansion. The greenback strengthened against the Euro exchange rate after U.S. Treasury 10-year notes declined to a level close to the record 1.4387% reached on June 1st. And it advanced versus the British Pound on news that the Bank of England may lower the costs of borrowing money.
Other currency trading reports revealed that the Canadian Dollar rallied against the Euro subsequent to a hike in U.S. stocks and commodities such as crude oil and copper. The Loonie erased losses versus its American counterpart as the Bank of Canada published its Monetary Policy Report which suggested that investment by consumers and businesses will lead to “modest growth” over the next two years as a result of lower demand for Canadian exports.