Financial Times FT.com

Dollar surges as Bernanke speaks out

By Krishna Guha in Washington

Published: June 3 2008 15:10 | Last updated: June 3 2008 19:05

The dollar surged while oil and gold tumbled on Tuesday after Ben Bernanke surprised markets by making clear the Federal Reserve does not want the US currency to weaken any further because of the risks to inflation.

The Fed chairman’s comments mark a radical break with the US central bank’s practice of not commenting on the dollar, a privilege traditionally reserved for the US Treasury secretary.

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