Forex News: Bernanke comments are dollar supportive

The Fed Chairs comments were strong with regard to the US dollar.  The US Treasury is supposed to be the defender of the dollar.  Expect Paulson and Bernanke to speak more in unison going forward as the dollar is now a major focus for both. 

The Fed is happy with rates where they are.  They will not be lowered.  The housing is still a drag and will remain a drag, but a stronger dollar may ease some of the bad sentiment at least.  It may also help break the oil price/commodity rise.  Speculators got too comfortable buying oil as the dollar declined.  Granted the oil price has continued to go up in April/May (fro $113 to $130 plus) without an dollar decline, but perhaps the oil complex finds some liquidation ahead on slower global growth and a stronger dollar.  Exporters of oil do not have an incentive to keep prices down when the dollar is declining.  The market knew this and it caused oil to rise.  Remember oil was $113 at the end of April. So a correction back to that level is not really out of the question.