The euro rose to a seven-week low against the dollar, as investors increased their bets that the European Central Bank will intervene in the situation to limit losses from so-called "peripheral bonds." Note also that the yield on the bond markets of Italy and Spain nearly grown, and the Italian banking stocks suffered heavy losses. As follows from the recent comments, a former prime country Berlusconi ruled out an alliance with the center-left Party of Monti.
The yen rose against all major currencies, as many investors have begun to use this currency as a safe-haven.
The dollar index fluctuated after Federal Reserve Chairman Ben Bernanke said the U.S. economy will continue to recover in 2013, but the situation on the labor market and the economy as a whole is weak, and therefore, further mitigation is necessary. Bernanke's comments indicate that he supports an extension of the Fed's bond purchases by 85 billion dollars. Note also that Bernanke did not mention about the difference in the views of the commission members FOMC, but touched all the issues that are of concern. Federal Reserve Chairman Ben Bernanke called on the White House and Congress to make adjustments and replace sharp automatic spending cuts, known as sequestration. In the view of the Fed automatic spending cuts, which are expected to come into force on Friday, in order to reduce the deficit can affect the pace of economic recovery. Bernanke believes that the gradual reduction of costs in the short term will not remove completely fiscal risks. However, Bernanke believes in the long-term effect will be more significant.
Swiss franc rose to a six-week high against the euro on speculation that Italy will need a second vote after the inconclusive election results, which immediately increased the demand for the relative safety of the franc.