Dollar Moves after Ben Bernanke’s comments!

The US Dollar continued its rebound started Monday on the heels of Federal Reserve Chairman Ben Bernanke’s comments. The Dollar also was helped by a profit taking selloff in stocks, oil and gold – all which have been steaming forward as of late. Coupled with all of the above, the European Central Bank President, Jean Claude Trichet commented that the Euro is not a substitute for the Dollar as a reserve currency and that the Dollar’s function as the primary reserve is essential. This gave investors and additional sense of calm amidst the Dollar’s recent weakness and worries about the prospect of it losing steam as the major reserve currency for the world’s major countries.

At 10:00PM GMT in the forex online market, the US Dollar was up.7% to the Euro to 1.4866, up .27% to the Japanese Yen to 89.28, up .11% to the British Pound to 1.6798, up .97% against the commodity reliant Canadian Dollar to 1.0576 and .9% versus the Aussie to .9267. The Dollar also rose .76% to the Swiss Franc to 1.0154 and .49% against the New Zealand Dollar to .7453.

Low interest rates and the prospect that they will not be going higher anytime soon is still weighing the Dollar down. Speculation by analysts suggests that it could be the middle of 2010 before the US in a position to raise their interest rates, a scenario that spells a long and painful winter for Dollar traders.