Dollar rebounds from 15-month low

Wednesday, November 18, 2009
NEW YORK: The dollar rebounded on Tuesday from a recent 15-month low after Federal Reserve Chairman Ben Bernanke’s rare comments on the currency spurred traders to trim long-term bets against the greenback.

Bernanke surprised investors on Monday when he said the central bank was “attentive to implications of changes in the value of the dollar,” although he reiterated that interest rates would remain exceptionally low for an “extended period.”

Some interpreted his remarks on the dollar, which is usually the purview of Treasury, as a sign the Fed is worried further depreciation could stoke inflation.

“Though not sounding an overtly alarmed tone over the value of the dollar, commenting on the currency shows that the Fed is concerned enough to at least address the issue,” said Camilla Sutton, a strategist at Scotia Capital in Toronto.