Dollar Rallies After Bernanke Rules Out QE3

UPDATE: Despite strengthening against the euro immediately after Bernanke’s speech, the dollar has lost any gains and is actually down on the day. Elsewhere though, the dollar is still strong.

PREVIOUSLY: The dollar strengthened versus the franc, euro, pound, Aussie, and New Zealand dollar after Ben Bernanke ruled out new policy announcements.

Currency traders worried that further quantitative easing would increase the supply of money in circulation, weakening the dollar.

The dollar’s gains against the Swiss franc were particularly dramatic, as this chart shows. This could be the newest sign that the franc—which has declined sharply since earlier this month—may truly be out as the world’s “safe haven” currency.


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