Following the Federal Reserve’s Beige Book report that said there has been an increase in the consumer expenditure, the dollar witnessed a decline on Wednesday. The Beige Book report is based on a study from 12 districts covered by the Federal Reserve.
The decrease in the dollar followed a statement by Fed Chairman Ben Bernanke, who said the U. S. economy can very well tackle the monetary reductions, which are expected to come. The dollar index dipped to 87.911, which was 88.307 earlier on Tuesday. The euro, on the other hand, climbed to $1.1982, against $1.1942 on Tuesday. The dow also dropped by 0.3% after this statement.
Bernanke, in his comment that he made for the House Budget Committee, said that there are some chains clutching the economy even now and the Sovereign debt crisis can affect the U. S. recovery minutely. For that, he suggested, the market will have to be steady.
The experts in the market will keep a tap on Bernanke’s Remarks to get the signals of any change in the interest rates.