Reuters: US Dollar Report: GLOBAL MARKETS-Stocks rise on Bernanke view, dollar off

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GLOBAL MARKETS-Stocks rise on Bernanke view, dollar off Mar 26th 2012, 13:57 Mon Mar 26, 2012 9:57am EDT * Bernanke comments lift stocks, drag on dollar * Gold shoots up 1 percent * German business sentiment rises unexpectedly By Rodrigo Campos NEW YORK, March 26 (Reuters) - Global stocks rose on Monday while the dollar retreated after U.S. Federal Reserve Chairman Ben Bernanke said the path to lower U.S. unemployment required continued accommodative policies. Bernanke's comments to the National Association for Business Economics underscored views that easy U.S. monetary policy would remain in place for some time and fanned hopes that markets could see another round of quantitative easing. Previous rounds of Fed asset purchases have weakened the dollar and boosted U.S. and global stocks. Further supporting equities, German business sentiment rose unexpectedly for the fifth month in a row in March, signalling that Europe's largest economy is more resilient than others tied to the euro zone debt crisis. Leo Grohowski, chief investment officer at BNY Mellon Wealth Management in New York, called the remarks "the best of both worlds." "There's optimism that monetary accommodation is alive both here and in Europe, and so long as that is the case markets can continue to have a positive tone," said Grohowski, who helps oversee $168 billion in client assets. "With things getting better but also (with) continued accommodation, that's a very comfortable tone for the market." The Dow Jones industrial average gained 97.63 points, or 0.75 percent, to 13,178.36. The S&P 500 Index added 11.24 points, or 0.80 percent, to 1,408.35. The Nasdaq Composite rose 25.83 points, or 0.84 percent, to 3,093.75. Global equities as measured by MSCI rose 0.7 percent. The euro hit its highest against the greenback in three weeks while the U.S. currency slid to a three-week low against the Swiss franc. The euro rose to as high as $1.3329, its highest since March 2, according to Reuters data. Against the Swiss franc, the dollar dipped as low as 0.9035, its lowest since March 1. Sentiment toward the euro remained cautious as investors worried about the troubled euro zone economy. Gold prices rose 1 percent on the back of Bernanke's comments, as the dollar weakened and the Fed chairman's dovish stance reminded investors about the threat of inflation. "I think people have taken that to mean that gold is still going to be in demand," said Simon Weeks, head of precious metals at ScotiaMocatta. Link this Share this Digg this Email Reprints

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