Dollar Rises Following Bernanke Comments

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The dollar is up against its major counterparts Friday morning in New York, as statements from U.S. Federal Reserve Chairman Ben Bernanke Thursday evening indicated that an interest rake hike will be made "when the economic outlook improves sufficiently", prompting some traders to replenish their stake in the world's safe haven currency.

Bernanke said the Fed will begin tightening monetary policy depending on the strength of key economic indicators, adding that the timing and pace of any future tightening or use of other tools will be done "to best foster our dual objectives of maximum employment and price stability."

At its September 23 meeting, the Federal Open Market Committee left interest rates unchanged at a range of zero to 0.25 percent.

The dollar shot to a high of 1.4703 against the euro following comments from the Fed chief, although it has backed off of the mark and is currently at 1.4760, only mildly higher on the day. The buck tested a one-year low of 1.4845 in the previous session following concerns over the valuation of the greenback following a considerable number of stimulus measures in the world's largest economy.

The dollar may be holding higher against the euro following news that Germany, the Eurozone's largest economy, saw its trade surplus decrease to EUR 8.1 billion in August from July's EUR 14.1 billion, according to data from the Federal Statistical Office. This was also smaller than the expected surplus of EUR 12 billion and last year's EUR 10.8 billion.

The buck is also up against the pound after the Fed's comments, rising as high as 1.5934 earlier, but has ceded some of its gains and is posting a quote of 1.5993. The dollar is currently stuck between yesterday's nine day low of 1.6121 and September's four month high of 1.5771.

The dollar also gained ground against the yen, posting three day high of 89.4250 earlier, but is now only modestly higher, seeing a quote of 88.7650. The dollar has found support after testing a 1995 low of 87.08, set back in January.

The dollar is up against its major counterparts Friday morning in New York, as statements from U.S. Federal Reserve Chairman Ben Bernanke Thursday evening indicated that an interest rake hike will be made only "when the economic outlook improves sufficiently", prompting some traders to replenish their stake in the world's safe haven currency. (Market News Provided by RTTNews)