Dollar mixed after Bernanke speech

AP News
Posted: Jun 07, 2012 4:31 PM
Dollar mixed after Bernanke speech

The dollar was mixed against other major currencies Thursday after Federal Reserve Chairman Ben Bernanke said the central bank is prepared to launch another round of bond-buying if the economy weakens further. But he also signaled there were no imminent plans to help the economy.

Traders bought euros following two successful bond auctions in Spain and France. There was also increasing speculation that Europe is preparing to give Spain financial aid to help rescue its banks.

The euro rose to $1.2601 in late trading Thursday from $1.2546 late Wednesday.

Bernanke said in testimony before a congressional panel Thursday that the European debt crisis could pose a risk to the U.S. economy. But he said that he expects economic growth to continue this year

In Europe, Spain successfully raised $2.62 billion from the bond markets and France raised $9.7 billion. The high demand is sign that investors are more confident in the country's finances.

In Asia, China surprised investors by cutting its benchmark lending rate for the first time in nearly four years in a move to help boost its economy.

The dollar was mixed in other trading Thursday. The British pound rose to $1.5553 from $1.5474. The dollar fell to 0.9532 Swiss franc from 0.9571 Swiss franc and to 1.0247 Canadian dollar from 1.0287 Canadian dollar.

The dollar rose to 79.68 Japanese yen from 79.17 yen.