Dollar gained as investors reduced exposure to risky assets
European Central Bank President Jean-Claude Trichet added to weight on the Euro on Monday after he said his recent comments on policy on Aug. 2 preceded a period of market volatility. In those comments on monetary policy, he used the phrase “strong vigilance,” signaling action on ECB rates was likely. But that was little reassurance for dealers who had been betting another benchmark interest-rate hike by the ECB would likely boost the euro. This week, investors will be especially focused on Bernanke’s speech on Friday to see if he sheds light on whether market developments require additional m netary policy responses.