Bernanke Comment Reminds Of "New Dollar Policy"

Forex News: While Bernanke's tone on foreign exchange intervention was "fairly balanced," said Jens Nordvig of Goldman Sachs, it remind markets of the Fed's "new dollar policy." In testimony several weeks ago, Bernanke seemed to explicitly give support for a stronger dollar rate against the euro. "It's an anti-weak dollar policy," said Nordvig. And that's putting a ceiling on the euro's advance, after the common currency hit a record high Tuesday. "Downside risk for the dollar is moderated by this intervention threat," he said.