The US Dollar has fallen against the Euro and declined against a number of its most traded peers after Federal Reserve Chairman Ben Bernanke said that ending quantitative easing would not lead to economic growth for the US economy.
Bernanke told the US Congress; “A premature tightening of monetary policy could lead interest rates to rise temporarily but would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further.”He added that the Fed’s current monetary policy is providing significant benefits.
He went on to say that, “While the labour market has shown some improvement, high rates of unemployment and underemployment are extraordinarily costly. Not only do they impose hardships on the affected individuals and their families, they also damage the productive potential of the economy as a whole by eroding workers skills and by preventing many young people from gaining workplace skills and experience in the first place.”
The Canadian Dollar reversed its decline against the ‘Greenback’ after Bernanke spoke as fiscal support for the US currency is seen as a positive for Canada.
Bernanke reiterated that the Fed was prepared to either increase or reduce the pace of its bond buys depending on economic conditions, as the central bank stated on May 1 after its last policy meeting.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6626
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7730
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0241
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 102.8181
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.028
(Correct as of 15:45pm GMT)
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