• Home
• /
• Business

Dollar range-bound ahead of Bernanke speech

TOKYO — The dollar moved narrowly against the euro and other currencies in Asia Wednesday as caution grew ahead of testimony by the US Federal Reserve chairman and European bank “stress test” results, traders said.

The euro fetched 1.2890 dollars in Tokyo morning trade, almost unchanged from 1.2893 late Tuesday in New York, where the single European currency briefly topped 1.30 to hit a 10-week high.

The euro edged down to 112.54 yen from 112.70. The dollar was changing hands at 87.28 yen, a shade lower than 87.38 yen in New York.

The euro will likely extend losses throughout day as “it’s difficult to buy the euro now ahead of the stress test results” due out on Friday, the finance head at a major Japanese trading firm told Dow Jones Newswires.

Results of tests, designed to assess European lenders’ capacity to withstand economic or financial upheaval, will be released Friday.

The dollar inched down due to selling by Asian short-term funds ahead of testimony by Fed chairman Ben Bernanke before the Senate banking committee Wednesday amid speculation he will take a dovish tone, the finance head said.

The dollar was almost flat against the Singapore dollar and other Asian currencies.

“The market is hoping to hear that Bernanke gives some positive views on the US economic recovery, which will be a green light for higher risk appetite,” a trader in Singapore said.

Investors remain positive toward Asia as the economic recovery in the region is still holding firm, the trader said.