Dollar falls as traders expect rates to stay low
The dollar fell yesterday, a day after Federal Reserve chairman Ben Bernanke signalled the key US interest rate will stay low for some time.
Earlier in the week, Bernanke said rising commodity prices will likely have only a temporary effect on broader inflation in the US. Central banks raise interest rates to contain inflation, and policymakers overseas are already doing so. That makes the dollar less appealing to investors than currencies from countries where rates are already higher and expected to rise further.
The euro is trading above $1.48 for the first time since December 2009. The dollar is sliding versus sterling and Japanese yen. Currencies of countries that are big commodity exporters, such as the Australian dollar and Canadian dollar, are climbing.