Stocks and the dollar gained Monday in a surprising deviation from market trends we’ve seen this fiscal year. The dollar rose ahead of other currencies leading investors to predict when the interest rates might begin rising.
Federal Reserve Chairman Ben Bernake has reiterated that the Fed plans to maintain the nation’s low interest rates until further notice, but neglected to mention approximate dates. This has convinced many investors that the Fed will begin raising rates again as the economy improves to bolster the dollar.
These concerns began surfacing at full force on Friday when the labor department announced that the unemployment rate fell to 10 percent from 10.2 percent. The stagnant unemployment rate, had previously led many investors to believe that the economic recovery was anemic.
The improvement led to a short rise with the dollar accompanying it; however, analysts believe this deviation is likely to be the exception and not the new rule.
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