US dollar weaker on Bernanke comments

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The US dollar declined versus the euro and most other major currencies after remarks from US Federal Reserve chairman Ben Bernanke seemed to indicate that the Fed will cut US interest rates again soon.

US rates have already falling by 2.25 percent since September.

Mr. Bernanke said that he expects growth to pick up its pace later in the year, but that risks to growth remain.

He also said that credit would likely remain “more expensive and less available” for the time being.

In late morning trade in New York, it cost $1.4627 to buy a euro and $1.9718 to buy a pound.

Besides gaining on the dollar, the pound also strengthened versus the euro on decreased sentiment for another UK interest rate cut soon.

The pound traded at 74.18p to the euro around 11:30 a.m. in New York.

The yen weakened early in the day versus the greenback on investor enthusiasm for carry trades, but it gained back part of those losses after US markets opened the day’s session lower.

It cost ¥107.9700 to buy a dollar at late morning in New York, while the yen traded at ¥157.9278 to the euro and at ¥212.8952 to the pound.