Lanka Newspapers

Sri Lanka News Updates with Discussions

Lanka Newspapersimpartial's Home PageThis Page




Australian dollar jumps after Ben Bernanke`s comments about US economic outlook

Friday, 12 July 2013 - 7:00 AM SL Time

The Australian dollar has jumped by two cents against the US dollar after comments from the United States Federal Reserve chairman caused the US currency to fall.

Speaking in Massachusetts, Ben Bernanke said the Fed`s economic stimulus program remains necessary because US unemployment is too high and inflation is too low.

The Australian dollar surged to as high as 92.99 US cents on the comments.

It was trading at 90.93 US cents before Mr Bernanke began his speech.

At 5:22pm (AEST), it was buying 92.24 US cents.

Mr Bernanke hinted that there would not be any changes to the economic stimulus until employment increases and prices become stable.

`Currently we have an unemployment rate of 7.6 per cent, which I think if anything, overstates the health of our labour markets,` he said.

`On price stability, inflation is now about 1 per cent, which is below our 2 per cent objective. So both sides of our mandate are saying that we need to be more accommodative.`

In May, Mr Bernanke hinted that the Fed may scale down its bond-buying program if growth forecasts for the US economy improve.

Those comments caused financial markets around the world to fall as investors became concerned that increases to interest rates could make borrowing money more expensive.


Source(s)
http://www.abc.net.au/news/2013-07-11/australian-dollar-jumps-after-bernanke-comments/4813680

 Post a reply to this

 E-mail this to a friend




impartial
Senior Member

Joined: Dec 2007
Posts: 12056
Member Profile
LK Information  12 Jul 2013 00:01:33 GMT  Report for Abuse  
Speaking in Massachusetts, Ben Bernanke said the Fed's economic stimulus program remains necessary because US unemployment is too high and inflation is too low.

he he i thought he wanted stop stimulating US economy as he thought its in right track ? looks like another tougher years ahead
silibiris
Joined: Apr 2010
Posts: 4093
Member Profile
LK Information  12 Jul 2013 11:00:05 GMT  Report for Abuse  
Youkno Partial sir
That Tigress19 nona or mahaththaya predicted A$ will go down to 90c in six months.

It happened much quicker
2 days ago

Edited By - silibiris - 12 Jul 2013 11:05:18 GMT
silibiris
Joined: Apr 2010
Posts: 4093
Member Profile
LK Information  12 Jul 2013 11:03:02 GMT  Report for Abuse  
delete
Edited By - silibiris - 12 Jul 2013 11:03:34 GMT
shamalp
Joined: Nov 2010
Posts: 2427
Member Profile
LK Information  12 Jul 2013 18:28:52 GMT  Report for Abuse  
That Tigress19 nona or mahaththaya predicted A$ will go down to 90c in six months.

It happened much quicker
2 days ago


Silibiris,

If it happened quicker then it's not a good prediction. If it happened later than predicted then it means the beneficiaries of that prediction had to time to put their monies into it.
Page | 1  |
 Post a reply to this      E-mail this to a friend



(C) 2000-2013 www.lankanewspapers.com - Sri Lankan News & Discussions - Contact Us - RSS Feed - News Archives - src - FAQ  Google+