Dollar rose on Bernanke comments and Crude Oil drop
News and Events:
The Dollar rose on Tuesday as Bernanke said the Fed was considering extending the duration of the central bank's facilities for primary dealers into 2009 calming fresh credit concerns and encouraged investors to snap up US stocks.Markets expectations of tighter US monetary policy by year-end were boosted by Federal Reserve Bank of Richmond President Jeffrey Lacker's comments that withdrawing some of the stimulus as risks to the economy diminished made eminent sense. Interest rate futures have fully priced in a 25bp hike in the fed funds rate by year-end. The benchmark overnight lending rate is currently at 2% after it was slashed by 325bp since September.
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