By: Barbara Zigah
Ben Bernanke, the Chairman of the United States Federal Reserve Bank, in testimony to the U.S. Congress yesterday, said that the high unemployment rates currently experienced in the U.S. would probably continue for the next several years. He suggested that consumer confidence could be negatively impacted, and then any hope for a quick recovery of the American economy would be dashed. Mr. Bernanke also indicated that this was not the time to withdraw easing measures, as the economy was still very fragile.
Following that testimony, investors moved back out of higher risk, higher yielding currencies and back into perceived safe haven currencies. The Yen and the U.S. Dollar both benefited as a result. As reported at 3:25 p.m. (JST) in Tokyo, the U.S. Dollar Index, which is a measure of the greenback’s performance versus a basket of major currencies, held steady at 78.957 .DXY, yesterday it had briefly hit 78.591 .DXY, the lowest price in more than 6 weeks. Versus the Australian Dollar, the Japanese Yen gained .1%, trading at 76.42 Yen. The Yen traded at 133.02 Yen, a gain of .3% against the Euro; the Yen fared well against the Pound Sterling as well, gaining .3% to trade at 153.64 Yen.
USD and JPY Benefits from Bernanke Testimony
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.