The dollar fell for a third day against the currencies of major U.S. trade partners as Federal Reserve Chairman Ben S. Bernanke said the unemployment rate is likely to remain high “for some time.”
The euro extended gains, rising against all of its most- traded counterparts, as Bernanke said high unemployment will persist even after the biggest two-month drop in the jobless rate since 1958, a fall to 9 percent announced last week.
“His general tone seems to be quite dovish,” said Alan Ruskin, global head of Group-of-10 foreign-exchange strategy at Deutsche Bank AG in New York. “The market is getting used to the idea that even with the improvement in the U.S. data, the Fed’s going to be very slow to respond with tightening and therefore the dollar is not going to be that responsive to strong economic data.”
The Dollar Index, which IntercontinentalExchange Inc. uses to track the greenback against the currencies of six trade partners including the euro and yen, fell 0.4 percent to 77.662 at 10:14 a.m. in New York.
Source: Bloomberg By
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