Thank's Uncle Ben! The more he talked, the lower your dollar goes.
The dollar traded 0.1 percent from its lowest level this month against the euro after Federal Reserve Chairman Ben S. Bernanke said accommodative monetary policy is still needed, reducing demand for U.S. assets.
The greenback has weakened against all but one of its 16 major counterparts this year and Bernanke’s comments added to speculation the Fed will embark on a third round of quantitative easing, or QE3. The euro remained higher after a two-day advance against the yen amid optimism European finance ministers will agree to bolster the region’s debt-crisis firewall when they meet March 30. The yen weakened on prospects Asian stocks will extend a global rally.
“The U.S. dollar is going to find it difficult to rally,” said Andrew Salter, a strategist in Sydney at Australia & New Zealand Banking Group Ltd. (ANZ) Bernanke’s comments “were taken to mean the chances of QE3 were more likely,” Salter said.
The dollar traded at $1.3354 per euro at 8:31 a.m. in Tokyo from $1.3359 yesterday, when it touched $1.3368, the weakest since Feb. 29. It bought 82.96 yen from 82.82 yesterday, when it gained 0.6 percent. The euro was at 110.78 yen, after rising 1.3 percent to 110.65 yesterday.