Dollar Broadly Firmer
The dollar is firmer across the board Tuesday, which seems likely to limit the gains on commodities that we have seen the last few sessions.
Investors are selling the euro versus the dollar because the European Central Bank is likely to cut its benchmark rate toward 2.5 percent as oil prices fall and growth slows, analysts say.
Strong demand for the US currency to settle funding needs still outweighed signs of some easing in conditions on credit markets
The dollar also got a boost from comments from the Fed's Bernanke before Congress, when he supported the idea of further government spending in order to stimulate growth.
Hopes of a second fiscal stimulus package also sent stocks higher, with the Dow finishing up 4.5%. Bernanke described the US economy as being in a serious slowdown but it appeared that the US banking crisis had been averted.
At 9am BST the dollar was $1.3256 against the euro and $1.7082 against the pound.
Investors are selling the euro versus the dollar because the European Central Bank is likely to cut its benchmark rate toward 2.5 percent as oil prices fall and growth slows, analysts say.
Strong demand for the US currency to settle funding needs still outweighed signs of some easing in conditions on credit markets
The dollar also got a boost from comments from the Fed's Bernanke before Congress, when he supported the idea of further government spending in order to stimulate growth.
Hopes of a second fiscal stimulus package also sent stocks higher, with the Dow finishing up 4.5%. Bernanke described the US economy as being in a serious slowdown but it appeared that the US banking crisis had been averted.
At 9am BST the dollar was $1.3256 against the euro and $1.7082 against the pound.