After U.S. Federal Feserve Chairman Ben Bernanke promised "substantive additional action" to support growth, currency traders nervous about another interest rate cut pushed the value of the dollar still lower.The Fed has already cut interest rates three times recently, and Bernanke's statement sounded to many like a warning they're about to do so again. David Gilmore, a partner at Foreign Exchange Analytics
, saw it as "a clear indication that the Fed will cut rates by at least half a point" later this month. The Euro rose to $1.4793 in late New York trading, up from Wednesday's $1.4663, and other European currencies rose as well.
In a recent survey, 60% of SMB leaders expressed a concern about the falling dollar. A weaker dollar makes imported goods more expensive and hurts SMBs that rely on imports; companies that sell in Europe, on the other hand, should benefit.
At the same time, the rebound in the stock market caused the dollar to rise against the yen, so the converse will hold true for companies doing business with Japan.Associated Press