Blockchain, Crypto , Finance

If there is a global currency war, the USD is losing.

Ben Bernanke’s comments last night caused major moves in global FX markets, where investors backing the US dollar were caught out after the Chairman of the Federal Reserve said that the stimulus measures are likely to remain in place in the US for some time.

Bernanke stated that, “Highly accommodative monetary policy for the foreseeable future is what’s needed in the U.S. economy”.

Consequently, the USD fell back against a host of other currencies. Both the Pound and the Euro rose against the Dollar, up 0.7% and 0.8% respectively, at $1.51 and $1.30.

Versus the Yen, the Greenback also fell by over 1%, amid stability from the Bank of Japan which left its bond-buying programme on hold.

The Dollar Index, which tracks the price of the USD against a basket of currencies, also swiftly retreated from a three-year peak, dropping 2.7%. Such a dramatic fall has not been seen since the height of the global financial crisis.

Interestingly, however, whilst the USD suffered, miners and other global shares were given a lift as commodity prices climbed, pushing Asian indices higher.