EUR/USD Back Above 1.29 Before Bernanke Testimony

The dollar fell for a third day against the euro before Federal Reserve Chairman Ben S. Bernanke addresses Congress amid concern he will disappoint expectations for a paring back of monetary stimulus.

The greenback weakened yesterday after St. Louis Fed President James Bullard said the central bank should keep buying bonds and New York Fed President William Dudley said it had previously been overly optimistic about growth. The yen fell against 12 of its 16 major peers before the Bank of Japan concludes a two-day policy meeting today. Australia’s dollar halted a gain after a report showed A$150 billion ($147 billion) in mining and energy projects have been delayed or canceled in the past year.

“Bernanke isn’t hawkish, so I think he’s more likely to continue monetary easing,” said Takuya Kawabata, an analyst at Research Institute Ltd. in Tokyo, a unit of Japan’s largest currency margin-trading company. “The market will probably respond with dollar-selling to Bernanke’s remarks.”


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