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The dollar rallied the most in two months versus the euro as Federal Reserve Chairman Ben S. Bernanke said the central bank could reduce its bond-buying this year and end it in 2014 if economic improvement continues.
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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.
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The dollar gained versus the euro and yen before the Federal Reserve starts a two-day policy meeting tomorrow as investors weigh whether the central bank will curb bond purchases.
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The yen rallied the most since July 2009 amid the highest volatility in a year as investors reassess the Bank of Japan’s monetary stimulus measures that pushed the currency to a four-year low last month.
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The yen strengthened against most of its 16 major counterparts after minutes from the Bank of Japan’s latest meeting showed one policy maker advocated restricting stimulus to a two-year period.
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Ever since Standard & Poor’s stripped the U.S. of its AAA credit rating almost two years ago, the unemployment rate has fallen, household wealth has reached a record and the budget deficit is shrinking. More downgrades may be coming, anyway.
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The Dollar Index slid to its lowest level in almost four months on speculation the Federal Reserve won’t raise lending rates even if it elects to taper bond-buying monetary stimulus.
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The dollar fell against the majority of its 16 most-traded peers before U.S. economic data that may provide more direction about when the Federal Reserve will begin to taper its monetary stimulus.
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The yen fell against all of its 16 major counterparts on speculation the biggest gain in three years yesterday was too rapid amid forecasts for further monetary stimulus from the Bank of Japan.
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Edison International’s decision to abandon its San Onofre nuclear plant in California is the latest blow for an industry already facing questions about its long- term survival.