Dollar rises as Bernanke gives no hint of stimulus

AP News
Posted: Jul 18, 2012 3:41 PM
Dollar rises as Bernanke gives no hint of stimulus

NEW YORK (AP) — The dollar rose the euro Wednesday after Federal Reserve Chairman Ben Bernanke gave no indication that the Fed was about to step in again to help the U.S. economy.

In his second day of testimony before Congress, Bernanke said Wednesday economic growth remains weak and that the Fed will contemplate additional action if unemployment stays high.

But he offered no hints that the Fed would launch another round of bond purchases. The Fed has already launched two rounds of bond purchases, most recently in August 2010. Those programs push interest rates lower and can weaken the dollar.

The euro fell to $1.2264 in late trading Wednesday from $1.2289 late Tuesday.

New housing data pointed to a rebound in the U.S. real estate market. The Commerce Department said that housing starts rose 6.9 percent in June from May to a seasonally adjusted annual rate 760,000. That's the highest since October 2008.

The dollar was mixed against other currencies.

The British pound slipped to $1.5643 from $1.5647. The dollar rose to 0.9791 Swiss franc from 0.9775 Swiss franc.

The dollar fell to 78.80 Japanese yen from 79.09 yen and to 1.0111 Canadian dollar from 1.0127 Canadian dollar.