Currency Note US Dollar

US dollar weakens

By Smart Currency November 22nd, 2013

The US dollar movements this week were largely driven by investors speculation on when the Federal Reserve may commence tapering off its quantitative easing program. Federal Reserve Chairman Ben Bernanke backed up comments from Janet Yellen, Federal Reserve Chairman elect, by indicating that monetary stimulus would not be removed without significant supporting data showing an improving economy. With Janet Yellen’s nomination backed yesterday by the Senate Banking Committee, her comments carry even greater weight, but that being said, the minutes from the recent Federal Open Market Committee (FOMC )meeting suggested that a taper was likely in the coming months and therefore a December taper could still be on the cards. At the same time, the central bank clear that even if the unemployment level falls below the 6.5% target, this will not automatically lead to an interest rate hike. Yesterday, better than expected unemployment claims data from the US helped the currency, whilst today holds little economic data of note to affect the markets. Get in touch with your trader now for the latest US dollar rates, as the future movement of the currency remains unknown.