Dollar Falls on Talks About Additional Bonds Buying

The US dollar slid today after the Federal Reserve signaled that it may extend its bonds purchasing program and on concerns that the US economic recovery may stall. The currency regained some strength after the favorable macroeconomic reports.

The Federal Reserve Chairman Ben S. Bernanke voiced his concerns that the recovery may not be self-sustaining and the additional stimulus may be required to support the economy. These words resulted in the talks that the $600 billion bonds purchase plan may be expanded.

EUR/USD rose from the opening level of 1.3389 to 1.3405 as of 14:22 GMT today, following the advance to the intraday high of 1.3496. USD/JPY opened at 83.38, dropped to the intraday low of 82.84 and later rebounded to 83.42.

If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.