US Federal Reserve Chief Ben Bernanke recently announced that the bank’s easy money policy will remain as is until further notice. The dollar rose in Asia as a result.
According to Inquirer.net, the dollar “changed hands at 99.74 yen in the morning, up from 99.60 yen in New York on Wednesday, while the euro fetched $1.3111 and 130.77 yen, against $1.3125 and 130.73 yen.”
On Wednesday, Bernanke explained that the central bank intends to reduce its stimulus program only after seeing continues economic improvement.
“I emphasize that, because our asset purchases depend on economic and financial developments, they are by no means on a preset course,” he said, adding that the economy is in fact growing at a moderate pace with signs of additional strength in a number of sectors.
SMBC Nikko Securities’ Hiroichi Nishi said: “Bernanke’s words were nothing new, but did have a calming effect for those still harboring jitters about a near-term end of the U.S. easing policy.”
