Wednesday, July 13, 2011

Bernanke hints at more Fed stimulus, dollar sinks (AP)

NEW YORK ? The dollar is falling after Federal Reserve Chairman Ben Bernanke says the central bank could provide more support for the economy if weak growth continues.

Bernanke says that support could include a third round of Treasury bond buying. Such a program could keep interest rates from rising, supporting lending and economic activity.

But that also makes a currency less appealing to investors seeking big returns.

The euro jumped above $1.41 in morning trading from $1.4035 late Tuesday. It had hit a four-month low below $1.40 earlier Tuesday on fears of Europe's debt crisis spreading to the larger economies of Italy and Spain.

The British pound rose to $1.5980 from $1.5939. The dollar dropped to 79.11 Japanese yen from 79.43 yen, but remained above a four-month low of 78.49 hit Tuesday.

Source: http://us.rd.yahoo.com/dailynews/rss/economy/*http%3A//news.yahoo.com/s/ap/20110713/ap_on_bi_ge/us_dollar

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