Dollar weaker as Bernanke defends Fed stimulus measures

<p>The dollar is weaker in forex trading following Ben Bernanke’s Fed stimulus defence speech.</p>

The dollar has failed to made much headway in forex trading this morning (October 15th), following the chairman of the Federal Reserve's (Fed) comments on stimulus measures.

Ben Bernanke said yesterday that the central bank's decision to implement monetary easing to keep interests low is a step in the right direction – and is one other such institutions have taken to boost global growth.

His statement followed criticism from Brazil that the US's financial decision has hurt emerging economies.

Furthermore, chief of the International Monetary Fund (IMF) Christine Lagarde warned of asset bubbles forming in these nations as a consequence of monetary easing.

Speaking at the IMF and World Bank summit in Tokyo, Mr Bernanke said: "By boosting US spending and growth, it has the effect of helping to support the global economy as well."

At 10:20 BST, the dollar was marginally weaker versus the euro at $1 for every €0.771, while the greenback was firm against the pound at $1 equalling £0.622.

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