The US Dollar has fallen on the Friday trade after the release of weak economic data and the generally negative comments made by US Federal Reserve chairman, Ben Bernanke, the day before. The US Dollar fell as a closely observed consumer sentiment index fell to its lowest in 16 years. The US Dollar commenced the day on a weak note, due to Ben Bernanke's assessment of the US economy on Thursday. Bernanke told a Senate committee there were strong ''downside risks'' to US economic growth and that the Fed was ready to respond as necessary, a small hint that further interest rate cuts might happen in the near future.
''With house prices plummeting, employment falling, stock markets in turmoil and gasoline prices still above US$3 a gallon, it is little wonder consumers are unhappy,'' said Paul Ashworth, US economist at Capital Economics.
''But the extent of the decline this month suggests that a degree of panic has now set in -- this is bad, very bad,'' he said.
In forex trading, the US Dollar fell against the major currencies. Against the British Pound, it was at US$1.9612 from US$1.9682. The Euro traded at US$1.4683 at 10pm GMT after US$1.4637 late on Thursday in New York. The US Dollar traded at 107.72 Japanese Yen, down from 107.85 Yen on Thursday.
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