The US dollar gained broad strength against a basket of major currencies after Federal Reserve Chairman Ben Bernanke said that the US central bank will continue to keep an emergency lending facility to banks open beyond year end. The comments helped reassure markets should another large investment bank show risk of failure. The dollar continues to be helped by dropping oil prices to below $136 today, down from a recent record high of $146.
G8 leaders met on Tuesday in Japan, continuing their second day of talks in the group's three-day annual summit with the rate of appreciation of the Chinese yuan continuing to be a major concern for most market leaders especially the Euro-Zone.
The euro trimmed losses in early session trading to the dollar after a steep drop in pending U.S. home sales in May to -4.7%. The euro also dropped moderately after Bernanke's comments on emergency relief to financial markets gave support to the dollar. Euro-zone authorities commented on Tuesday on the “frightening” strength of the euro, which could weaken exports in the near future.
Sterling weakened to the dollar amid poor findings from a survey on UK companies released by the British Chamber of Commerce. The BCC reported that 5,000 businesses surveyed are currently facing their worst liquidity situations since 1992.
G8 leaders met on Tuesday in Japan, continuing their second day of talks in the group's three-day annual summit with the rate of appreciation of the Chinese yuan continuing to be a major concern for most market leaders especially the Euro-Zone.
The euro trimmed losses in early session trading to the dollar after a steep drop in pending U.S. home sales in May to -4.7%. The euro also dropped moderately after Bernanke's comments on emergency relief to financial markets gave support to the dollar. Euro-zone authorities commented on Tuesday on the “frightening” strength of the euro, which could weaken exports in the near future.
Sterling weakened to the dollar amid poor findings from a survey on UK companies released by the British Chamber of Commerce. The BCC reported that 5,000 businesses surveyed are currently facing their worst liquidity situations since 1992.