The dollar weakened against all of its major counterparts as Federal Reserve Chairman Ben Bernanke said that policy makers will provide economic stimulus if needed and as investor demand for higher-yielding assets increased.
The greenback fell the most in six months versus the euro, as Bernanke said that central bank is prepared to take additional action, including buying more government bonds if the economy appears to be in danger of stalling.
However, concerns for a delay on a second bailout for Greece persisted after a teleconference of Eurozone finance ministers on Wednesday failed to reach a decision about the bailout. European Union officials are believed to be looking to delay all or part of Greece's bailout until after a general election in the country, which is expected to take place in April.
Policy makers are studying the potential of granting a bridge loan to Athens, that would allow the island nation to meet €14.4 billion in repayments which are due on March 20th and consequently to avoid a default. How long can this continue?
Heading into the weekend we may see the pound struggle against the euro after the German PPI figures came out better than expected this morning.
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