The dollar gave back some of its strong recent gains versus the euro on Thursday, falling from an 8-month peak after stocks rebounded on comments from Federal Reserve Chairman Ben Bernanke.
Risk aversion has boosted the dollar in recent weeks, but traders breathed a sigh of relief after Bernanke said that a new lending program from the Fed could backstop the U.S. banking system if the European sovereign debt crisis intensifies.
The Fed stands ready to support the fragile U.S. recovery amid signs that the jobs market has not improved, the nation’s top central banker told lawmakers on Tuesday.
“Recent indicators, including new claims for unemployment insurance and surveys of hiring plans, point to the likelihood of more sluggish job growth in the period ahead,” Bernanke said in testimony prepared for the Joint Economic Committee of Congress.
The dollar slipped to $1.33 versus the euro after topping out at $1.3144 in earlier dealing. This was the dollar’s highest level since mid-January.
The buck also leveled off after hitting a yearly peak versus the sterling, edging to $1.54 from near $1.5350.
On the other hand, the dollar held most its advance versus its Canadian counterpart as oil prices fell. The buck rose to a yearly high of C$1.0635.
There was little movement near Y76.50 versus the yen. The pair has been stuck there for months, since the dollar hit a record low 75.94.
Eurozone finance ministers have decided to put off the decision on the next loan installment for Greece, worth EUR 8 billion, until the troika report on the country’s progress with the fiscal targets is ready.
Eurogroup President Jean-Claude Juncker said early Tuesday that a Eurogroup meeting, tentatively scheduled for October 13 to decide on the next loan tranche for Greece, has been canceled as the troika report will not be ready by then.
Europe’s banks are seen taking a significant hit if Greece must restructure, and ratings agency S&P now sees a 40 percent chance of a double-dip European recession.
“We now estimate the probability of a new recession in western Europe next year at about 40%, although in our baseline forecast we continue to anticipate sluggish and unevenly distributed growth in the coming five quarters,” said Jean-Michel Six, Standard & Poor’s chief European economist.
Why users still use to read news papers when in this
technological globe everything is available on web?
I like the helpful info you provide in your articles.
I will bookmark your weblog and check again here
regularly. I am quite sure I’ll learn lots of new stuff right here!
Best of luck for the next!
Can I just say what a comfort to find somebody that really knows what they are
discussing on the net. You definitely understand how
to bring an issue to light and make it important.
More people need to look at this and understand this
side of your story. It’s surprising you are not more popular because you certainly possess the
gift.
This is a great tip particularly to those new to the blogosphere.
Brief but very accurate info… Many thanks for sharing this one.
A must read post!
Hello there! I just want to offer you a big thumbs up for the great information you
have right here on this post. I’ll be returning to your blog
for more soon.
hello there and thank you for your information – I have certainly picked up anything new from right here.
I did however expertise some technical issues using this website, as I experienced to reload the website a lot of times previous
to I could get it to load properly. I had been wondering if your web
hosting is OK? Not that I am complaining, but sluggish loading
instances times will sometimes affect your placement in google and could damage your high-quality score if advertising and
marketing with Adwords. Well I am adding this RSS to my email and could look out for much
more of your respective interesting content. Make sure you update
this again soon.
I am really impressed along with your writing
abilities as smartly as ith the layout to your weblog. Is that this a
paid subject matter or did you customize it your self?
Either way stay up the nicee quality writing, it’s uncommon to see a nice weblog like this one these days..
Hmm is anyone else experiencing problems withh the pictures on this blog
loading? I’m trying to determine if its a problem on my end or if it’s the blog.
Any responses would be greaqtly appreciated.
Hi, Neat post. There’s an issue with your web site in internet explorer, would test this?
IE still is the marketplace leader and a big section of folks will omit your excellent writing due to this
problem.
Hello, i think that i saw you visited my website so i came to return the prefer?.I’m attempting to in finding things
to improve my site!I suppose its adequate to make use of some of
your ideas!!