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Forex - Dollar plunges after Bernanke comments

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Investing.com - The U.S. Dollar is trading markedly lower against nearly all of its major rivals during Thursday's Asian after Federal Reserve Chairman Ben Bernanke made comments after the close of U.S. markets Wednesday that implied the end of the central bank's easing efforts are not as imminent as previously believed.

In Asian trading Thursday, EUR/USD surged 0.87% to 1.3095 following the release of Fed minutes.

"Many members indicated that further improvement in the outlook for the labor market would be required before it would be appropriate to slow the pace of asset purchases," the minutes read.

"Some added that they would, as well, need to see more evidence that the projected acceleration in economic activity would occur, before reducing the pace of asset purchases."

GBP/USD rebounded off multi-month lows to jump 0.59% to 1.5105. The pound dropped to its lowest since June 2010 against the dollar on Tuesday after unexpectedly weak U.K. manufacturing data increased the likelihood of further easing by the Bank of England.

USD/JPY fell 0.09% to 99.62 after data showed Japan's core machinery orders rose 10.5% in May following an 8.8% decrease in April. The May reading easily topped economists' expectations for a 1.3% increase.

USD/CHF plunged 0.95% to 0.9496 while USD/CAD slipped 0.45% to 1.0420 after the Energy Information Administration reported that U.S. crude oil inventories fell by 9.9 million barrels in the week ended July 5, blowing past expectations for a decline of 3.3 million barrels.

After the close U.S. markets, Bernanke delivered comments that sent U.S. stock futures and commodities soaring while sending the U.S. Dollar Index plunging. In those remarks, Bernanke said the Fed's accommodative monetary policy is needed over the near-term, quelling speculation that the central bank could begin tapering its USD85 billion-per-month easing program as soon as September.

AUD/USD climbed 0.51% to 0.9224 while NZD/USD soared 0.98% to 0.7915. The U.S. Dollar Index sank 1.32% to 83.09.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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