The dollar fell against all of its 16 most-traded peers amid bets Federal Reserve Chairman Ben S. Bernanke will signal the central bank plans to maintain bond purchases that risk debasing the currency.
Federal Reserve Chairman Ben S. Bernanke will probably say tomorrow after a central-bank meeting that policy makers will maintain current bond purchases until improvement in the economy changes their mind, said Marc Chandler of Brown Brothers Harriman & Co.
South Korea’s won is poised to rebound from its lowest level in two months versus the dollar as Japan’s reluctance to expand stimulus measures reduces the threat of more interest-rate cuts, trading patterns show.
The lira advanced for a second day as central bank Governor Erdem Basci said he’d intervene to tame currency volatility and as calm returned to Istanbul this morning after a night of violence. Bond yields fell.
The Federal Reserve will refrain from tapering its $85 billion in monthly bond purchases before the end of Chairman Ben S. Bernanke’s term in early 2014, according to Brown Brothers Harriman & Co.’s Marc Chandler.