The US Dollar has strengthened against Sterling and edged up against the majority of its most traded peers as speculation rises that Federal Reserve Chairman Ben Bernanke will hint that the Central Bank will maintain the monetary easing programme that risks debasing the currency.
The US Dollar/Pound Sterling Exchange Rate is currently in the region of 0.6383
Against the Euro the Dollar currency pair fell to its weakest level since February and the Japanese Yen continued its rally ahead of the US Central Bank releasing revised economic forecasts.
“The market is expecting Bernanke to express some discomfort with the rise in long-term interest rates and is probably looking for something relatively dovish from the press conference,’ said Adam Cole, head of Group-of-10 currency strategy at Royal Bank of Canada. “The market is setting itself up for the big event of the day. In the long-run, I expect the Yen to strengthen versus the Dollar.”
The uncertainty seen in the markets over the past few weeks is a result of Bernanke saying on May 22nd that the Federal Reserve could reduce its monthly purchases of $ 45 billion of Treasuries and $40 billion of mortgage securities if the USA’s employment outlook shows signs of a significant improvement.
Fed Chairman Ben Bernanke is due to hold a press conference in Washington later in the day. Depending on what he says there is sure to be big movements in the market. If he says that no easing will take place then emerging currencies such as the Rand will benefit if he says the opposite then the Dollar will strengthen.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6383
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7466
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0513
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 95.0485
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0194
The Pound Sterling/ US Dollar Exchange Rate is currently in the region of: 1.5666
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3392
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9511
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9809
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8020
(Correct as of 14:45 pm GMT)
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