Bernanke speaks about the sliding US dollar
Published:Tuesday | November 17, 2009 | 9:28 AM
US Federal Reserve Chief Ben Bernanke has said policymakers are mindful of the sliding US dollar.
Mr. Bernanke said he’s attentive to the decline in the currency and is working to help ensure that the dollar is strong.
He has also signaled that interest rates will be kept at a record low, a factor in the dollar\'s steep drop.
The US currency has dropped 13 per cent against the pound and 6.4 per cent versus the euro so far this year.
The comments are said to be unusual, as the Fed rarely talks about the value of the US dollar.
Bernanke is trying to bolster confidence in the dollar without actually raising rates, as its felt that might hurt the recovery.
The US economy is reported to have come out of recession in the July to September quarter, its first period of growth since the second quarter of 2008.
However, some economists are worried that the dollar may go into freefall if the Fed does not intervene in some form.