Forex News and Rumors – Afternoon Update

Credit Crisis Damage to be “Long-Lasting” – Bernanke

US Federal Reserve Chairman Ben Bernanke said today that the credit crisis brought on by the subprime mortgage problems will have a “long-lasting” effect on home prices and consumer wealth.

“The damage from this turn in the credit cycle — in terms of lost wealth, lost homes, and blemished credit histories — is likely to be long-lasting,” Bernanke noted in a speech before the Community Affairs Conference in Washington. More

Peso Falls After Central Bank Cuts Rates More Than Expected

Mexico’s peso fell to 13.1600 per US dollar in New York today from yesterday’s close of 13.0891 after the country’s central bank cut interest rates more than expected to 6 percent from 6.75 percent. More

US Consumer Sentiment Hits Seven-Month High

A Consumer Confidence index rose to 61.9 in March from 57.1 the month before for a second straight increase in consumer sentiment. More

GM CEO Now Says Bankruptcy “Probable”

General Motors Corp CEO Fritz Henderson today said that a bankruptcy filing is “probable” but not “preferred” as GM struggles to meet the restructuring goals the Obama administration has mandated in return for additional funding. More

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