Third day of heavy losses for the US Dollar

Third day of heavy losses for the US Dollar

The dollar plummeted to record lows and shares tumbled yesterday after Ben Bernanke, the Fed Chairman, spooked markets with a prediction of US bank failures and fresh warnings over a grim outlook for America’s economy. In its third day of heavy losses, the embattled dollar slumped across the board on foreign exchanges after Mr Bernanke gave what economist said was a “green light” to markets to step up their assault on the US dollar. The Fed Chairman did offer some positive comments , that most banks will bounce back from their mortgage troubles, that inflation should ease and that the US is nowhere near the stagflation scenario of the 1970’s. At present it doesn’t seem that those comments will be enough to halt the dollars slide. The dollar lost over 1 per cent against the Euro as it hit $1.5231, against the pound the dollar fell half a percent to hit $1.99.