The U.S. dollar has been on a roll since talk of the Federal Reserve unwinding its aggressive monetary stimulus program gathered pace about a fortnight ago. Now, Fed Chairman Ben Bernanke could give the dollar bulls reason to pause, say strategists.
Bernanke testifies to Congress later on Wednesday amid speculation that he could shed some light on the timing of when the Fed will start phasing out the quantitative easing (QE) that has weighed on the greenback in recent years.
Speculation about monetary stimulus being phased out sooner rather than later lifted the dollar index, a measure of the dollar’s value against other major currencies, to 84.37 on Friday – its highest level since July 2010.
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