U.S. dollar slumps on Bernanke remarks; euro rallies

Source: reuters.com
The dollar tumbled on Wednesday, on track for its worst showing against a basket of currencies in nearly a month, after Federal Reserve chief Ben Bernanke said the Fed could resort to more monetary stimulus if the U.S. economy weakens further.

The dollar also fell to a record low against the Swiss franc, in the wake of Bernanke’s testimony. The dollar hit a trough of 0.81820 franc, while the euro traded near $1.42, off the prior session’s four-month low beneath $1.39 and on pace for its best day since April.

Surprisingly strong Chinese growth data also helped overshadow worries about the euro zone debt crisis after Fitch Ratings said an ambitious Italian deficit reduction plan would help stabilize the country’s credit rating.

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[insetleft title=”Post Script”]Om Federal Reserve talar om penningpolitisk stimulans handlar det om att trycka ännu mer pengar – inflationen lär inte vänta på sig.[/insetleft]

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