The US dollar rose today against the euro and the Great Britain pound as many traders believed in the positive effect of the quantitative easing on the US economy, despite the criticism from the economists. The dollar dropped against the Japanese currency.
The Dollar Index, which tracks the performance of the US currency versus the currencies of the US six major trading partners, jumped as much as 5.1 percent after it reached it lowest level this year on November 4th. Futures traders trimmed their bets on the decline of the dollar versus the euro, the yen, the Australian dollar and the Swiss franc.
The leaders of other countries criticized Ben Bernanke for the decision to print money, saying that it wouldn’t help the US economy and, on the contrary, would cause the financial instability. Wolfgang Schaeuble, the German Finance Minister, called the policy of the Federal Reserve “clueless”. The Bernanke defended his decision, saying that it was the best way to support the US economy and the global recovery.
EUR/USD dropped from 1.3736 to 1.3614 today as of 20:08 GMT, while GBP/USD went down from 1.6001 to 1.5950 after it advanced to the intraday high of 1.6083. USD/JPY dropped from 83.45 to 83.25.
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