Bernanke’s speech, Momentum of Profit Taking
As the recovery in the dollar over other currencies in the world. This was triggered by a speech the Governor of the Fed, Ben Bernanke, on Friday night before a conference sponsored by the state of the Boston Federal Reserve. “During today’s trading rupiah had weakened to as low as 8932 per U.S. dollar after 8920 rose to a new level,” Rupiah exchange rate in the interbank foreign exchange spot market on Monday closed down 11 points (0.12%) so 8.931/8.935 per U.S. dollar from the position last week 8.920/8.925. But further the Word says, the general sentiment of the weakening U.S. dollar is still awake. However, Bernanke’s speech last week, did not provide details or further details related to easing monetary or quantitative easing (QE) that the U.S. central bank will roll it. ” these details encourage investors to book profits from the long rally in financial assets last two weeks, Bernanke said the Fed would implement the second phase of monetary easing by QE. But Ben did not state when the execution time and how much.
Markets expect, the program will be held on November 2 to 3 the next. “Based on the survey, the Fed is expected to increase purchases of bonds worth U.S. $ 500 million,” Word asserted, because Bernanke did not give details on his speech last week, investors take advantage of this momentum to profit taking temporarily. “Included on the rupiah,” he said. On the other side of the joint currency of European countries (the euro) weakened against the dollar since the governor of the ECB (European Central Bank), Jean-Claude Trichet yesterday said the European Central Bank stimulus will still be maintained as long as the market still need it. “This comment is a negative sentiment for the euro,” he said.
As a result, the U.S. dollar strengthened against all major currencies, including against the euro. “Against the euro the U.S. dollar traded rose to the level of U.S. $ 1.3881 from U.S. $ 1.3974 per euro, On the other hand, Purwoko Sartono, an analyst with Panin Securities said, the weakening stock index earlier this week triggered weakening of prices of various commodities which averaged 1.7%. Among these, crude oil prices fell to as low as U.S. $ 81.25 per barrel and the price of crude palm oil (CPO) at the level of U.S. $ 1,000 per tonne based on prices in Rotterdam. So is the price of metal. “Depressed stock index as well as overbought factor in the banking sector’s shares
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Ben Bernanke, European Central Bank, Federal Reserve System, Government, Jakarta, Japanese yen, Quantitative easing, United States dollar
