The U.S. dollar rose against most major currencies this week as investors' concerns about the European debt crisis continued to weigh on the euro. Meanwhile, the dollar was lifted as the Federal Reserve pledged to provide further stimulus policy if needed. The Federal Reserve chairman Ben Bernanke said this week the economy is weaker than the central bank had expected and that poor job growth continues to undercut consumer confidence. He warned Congress that deep spending cuts may impede a recovery. Bernanke also said the central bank is ready to take more steps to stimulate the economy if necessary. The most anticipated economic data this week was related to U.S. employment situation. A report from ADP said private U.S. employers added 91,000 jobs in September, more than some analysts had expected. The figure eased investors' concerns about the job markets. The U.S. Labor Department said initial jobless claims rose 6,000 to 401,000 last week, slightly lower than economists' expectations. The better-than-expected figure provided positive view for the much expected non-farm payroll report due out on Friday. The non-farm payroll report for September showed that 103,000 jobs were added, which were better than expected. However, the unemployment rate remained high at 9.1 percent, suggesting that the job markets were still weak. Meanwhile, the debt crises in Greece and other eurozone countries still remain unsettled, with the Greek government acknowledging this week that it won't meet its deficit target this year because of expectations for a deeper-than-expected economic recession. Luxembourg Prime Minister Jean-Claude Juncker said earlier this week eurozone finance ministers haven't decided on the release of the next scheduled aid payment to Greece. The news raised concerns over whether the country would receive financial aid in time from international lenders to avoid default. Also, the rating agency Moody's on Friday cut ratings of 12 British banks, raising investors' concerns about the health of European banks. However, other news from Europe injected some confidence to the market. Jean-Claude Trichet, president of the European Central Bank (ECB), said the ECB would resume a program of buying covered bonds and conduct longer-term refinancing operations. Both actions aimed at tackling liquidity shortage among commercial banks and were in line with investors' expectations. Meanwhile, the Bank of England said it will increase its asset purchases by 75 billion pounds (116 billion dollars) to 275 billion pounds (426 billion dollars). The announcement surprised the market as most analysts expected that such a move will happen not earlier than November. The British central bank also kept its key interest rate unchanged at 0.5 percent. The euro lost 0.1 percent against the dollar this week, pressured by investors' concerns over Greek debt crisis. The British pound also dipped 0.1 percent against the dollar.

 

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