Dollar falls after Bernanke speech

AP News
|
Posted: Aug 31, 2012 12:27 PM

NEW YORK (AP) — The dollar is falling against most major currencies after Federal Reserve Chairman Ben Bernanke said that the central bank can do more to help the U.S. economy rebound.

Traders have been speculating about the odds of another round of quantitative easing from the Fed. It has already launched two rounds of bond purchases, most recently in August 2010. Those purchases push interest rates lower and can weaken the dollar, which is why traders are trimming their holdings in the currency.

Bernanke made his comments at an annual Fed conference in Wyoming's Jackson Hole resort Friday.

The euro rose to $1.2560 in afternoon trading from $1.2507. The British pound rose to $1.5857 from $1.5787.

The dollar fell to 78.31 Japanese yen from 78.63 yen.