Dollar Rebounds after Slide

Market bullish on bucks


The dollar rose broadly on Friday as investors bought back the currency in the wake of a steep selloff, confident that the U.S. Federal Reserve will be the first major central bank to step away from ultra-loose monetary policy.

Investors had aggressively shed long dollar bets after U.S. Fed Chairman Ben Bernanke cast doubts on Wednesday over when the central bank will start slowing its asset-purchase program. That reversal caused the dollar to retreat from a three-year high against a basket of six currencies reached earlier in the week.

Bernanke's comments, however, did not change the market's overwhelmingly bullish stance towards the dollar.