Posted February 10, 2011
The euro improved for day. US dollar down on Bernanke remarks.
During the Wednesday currency trading session, the US dollar continued to lose some ground against the euro. It also fell for the day against the UK pound as well as the Japanese yen. This came as the US Treasury yields fell during the trading day. This made the assets of the United States less attractive to investors. It also made investors more likely to sell out of shares of the US currency.
Federal Reserve chairman Ben Bernanke issued comments during the session that helped to push the market in this direction. Specifically, yields fell after a successful sale of Treasury bonds occurred, and after he stated that the Federal Reserve has no intention of tightening up monetary policy in the United States at any point in the near future. This is something that many investors are looking for and hoping for as a way to help encourage a more profitable outlook.
During the Wednesday currency trading session, the US dollar index moved the US dollar from 77.962 at the end of the Tuesday trading session in North American trading to Y 77.661 for the day. It was at 77.784 during the day, prior to the Fed's remarks.
The euro improved on the day against the US dollar. It moved from US $1.3685 at the end of the North American trading session on Tuesday to US $1.3721 by the end of the session on Wednesday. That is up from the earlier mark of US $1.3685.
Also playing a role in the euro's movements for the day was the considerations for the next European Central Bank president. Before the currency was able to recovery, it moved lower, to as low as US $1.3609 after reports about Axel Wieber, who is the current German Bundesbank President, indicated that he would no longer be in the running for ECB president.
During the trading day, the yen also moved higher against the US dollar. The US dollar moved from Y 82.38 at the end of the trading session in North America on Tuesday to Y 82.42 at the end of the session on Wednesday.
Also notable during the trading day was the movement of the UK pound. It moved from US $1.6071 at the end of the trading day on Tuesday in North America to US $1.6099 at the end of the session on Wednesday.