The dollar rose against a majority of its most-traded counterparts as a pledge by the Federal Reserve to keep its key interest rate at a record low into 2013 failed to calm concern that global growth is slowing.
The Dollar Index rose 0.2 percent, paring yesterday’s slide. The Australian currency trimmed yesterday’s rally after data showed that consumer confidence deteriorated for a fourth- straight month. The yen traded near levels that prompted Japanese policy makers to intervene in markets last week to counteract the currency’s strength. “The step that the Fed did take in suggesting rates will likely remain low for some time was really one of the weakest of their options,” Todd Elmer, head of Group-of-10 currency strategy for Asia ex-Japan at Citigroup Inc. in Singapore, said in an interview with Bloomberg Television. “The risk is that investors cut that exposure in risky currencies and it contributes actually to a bit of dollar appreciation. http://www.bloomberg.com/news/2011-08-09/yen-drops-as-stocks-poised-to-advance-japan-intervention-concern-remains.html '+'
