News Column

U.S. Dollar Drops Ahead of Bernanke's Testimony

July 17, 2013

The U.S. dollar weakened Tuesday as traders were cautious ahead of the Federal Reserve Chairman Ben Bernanke's testimony to Congress Wednesday.

Bernanke is scheduled to deliver his semi-annual monetary policy report to Congress Wednesday. Traders expect Bernanke to reiterate his previous remark that monetary policy would remain accommodative.

On July 10, the Fed chief noted that "highly accommodative monetary policy for the foreseeable future is what's needed in the U.S. economy."

Analysts are looking for clues as to when the U.S. central bank might start reducing its stimulus program.

Esther George, the hawkish president of the Kansas City Federal Reserve Bank, said Tuesday that the Fed should start cutting its bond-buying program sooner, and end it "sometime in the first half of next year". In late New York trading, the euro gain to 1.3161 dollars from 1. 3061 dollars of the previous session and the British pound increased to 1.5148 dollars from 1.5104 dollars. The Australian dollar climbed to 0.9244 dollars from 0.9098 dollars. The dollar bought 99.18 Japanese yen, lower than 99.86 yen of the previous session. It edged down to 0.9400 Swiss francs from 0. 9478 and dropped to 1.0370 Canadian dollars from 1.0419.

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Source: Copyright China Economic Information Service (Xinhua) 2013. Distributed by MCT Information Services

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