Dollar trades still near record lows vs Euro
The Dollar was flat against the Euro on Friday, supported by a six-month high in US Consumer Sentiment and expectations for hawkish comments from the Fed Chairman in testimony this week. Analysts expect Ben Bernanke to tell the US Congress in monetary policy testimony on Wednesday and Thursday that the Federal Reserve is more worried about a flare up in inflation that it is that housing market turbulence may seriously damage the economy. The boost in Consumer Sentiment for July did little to improve the market?s perceptions of the Dollar, despite a surging US stock market. Many traders still e pect benchmark US interest rates to stay on hold, while other Central Banks keep tightening monetary policy. Consumer Price in New Zealand rose more than expected driving the NzdUsd traded up to its highest since it was floated in 1985. Traders said the Yen?s dip suggested people were using cheap Yen again to buy the New Zealand Dollar.