The dollar rose against all of its 16 major counterparts after Federal Reserve Chairman Ben S. Bernanke signaled yesterday that the central bank won’t add to stimulus measures that could erode the value of the currency.
The euro weakened against the greenback before European leaders begin a two-day summit in Brussels today to discuss Greece’s financing needs as the nation struggles to stave off default. The pound dropped below $1.60 for the first time since April 1 as a retail index dropped to the weakest in a year.
“There’s an indication there that the Federal Reserve, come the end of this round of Treasury bond purchases, the bar is high and its unlikely to ease further,” said Nick Bennenbroek, head of currency strategy at Wells Fargo & Co. in New York. “The dollar may have gotten support from that.”
The dollar rose 1.4 percent to $1.4163 per euro at 9:03 a.m. in New York, from $1.4357 yesterday. The currency strengthened 0.5 percent to 80.72 yen, from 80.29. It reached 80.80 yen, the highest level since June 16.
The dollar advanced for a second day against the yen after policy makers decided to keep the Fed’s balance sheet at a record to spur the economy after completing $600 billion of bond purchases this month in a second round of quantitative easing, known as QE2. The Fed cut growth forecasts for this year and next and raised estimates for the unemployment rate.
The dollar has lost 14 percent in the past 12 months, making it the worst performer among 10 major-economy currencies tracked by Bloomberg Correlation-Weighted Currency Indexes.
The euro weakened against the greenback before European leaders begin a two-day summit in Brussels today to discuss Greece’s financing needs as the nation struggles to stave off default. The pound dropped below $1.60 for the first time since April 1 as a retail index dropped to the weakest in a year.“There’s an indication there that the Federal Reserve, come the end of this round of Treasury bond purchases, the bar is high and its unlikely to ease further,” said Nick Bennenbroek, head of currency strategy at Wells Fargo & Co. in New York. “The dollar may have gotten support from that.”
The dollar rose 1.4 percent to $1.4163 per euro at 9:03 a.m. in New York, from $1.4357 yesterday. The currency strengthened 0.5 percent to 80.72 yen, from 80.29. It reached 80.80 yen, the highest level since June 16.
The dollar advanced for a second day against the yen after policy makers decided to keep the Fed’s balance sheet at a record to spur the economy after completing $600 billion of bond purchases this month in a second round of quantitative easing, known as QE2. The Fed cut growth forecasts for this year and next and raised estimates for the unemployment rate.
The dollar has lost 14 percent in the past 12 months, making it the worst performer among 10 major-economy currencies tracked by Bloomberg Correlation-Weighted Currency Indexes.
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