The dollar fell against most major currencies on Tuesday after the U.S. Federal Reserve Chairman Ben Bernanke said growth and inflation risks have both increased.
Bernanke told U.S. Congress Tuesday the fragile economy is facing "numerous difficulties" despite aggressive interest rate reductions and other fortifying steps. Restoring financial market stability is a top priority for the Federal Reserve, he said.
"The possibility of higher energy prices, tighter credit conditions, and a still-deeper contraction in housing markets all represent significant downside risks to the outlook for growth. Atthe same time, upside risks to the inflation outlook have intensified lately," Bernanke said.
The euro bought 1.5878 dollars in late New York trading compared with 1.5916 dollars it bought late Monday. In earlier trading, the euro touched 1.6038 dollars, a new record high.
The British pound rose to 2.0020 dollars from 1.9944 dollars on speculation that accelerating inflation will keep the Bank of England from lowering interest rates.
The dollar fell to 1.0134 Swiss francs from 1.0161 Swiss francs, and fell to 105.07 Japanese yen from 106.12 Japanese yen. It fell to 1.0026 Canadian dollars from 1.0054 Canadian dollars.
Source: Xinhua
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