The dollar dropped against all of its 16 most-traded peers except Brazil’s real amid bets Federal Reserve Chairman Ben S. Bernanke will seek to damp investor expectations of a reduction in stimulus when he testifies to Congress tomorrow.
The euro rose for the first time in three days versus the greenback even after German investor confidence unexpectedly fell. India’s rupee reached a two-week high after policy makers raised interest rates. Sweden’s krona climbed after minutes were released of the central bank’s last meeting. Bernanke said July 10 U.S. unemployment and inflation warrant further stimulus.
“The message is resonating with investors that any Fed tapering is data-dependent,” Andrew Wilkinson, chief economic strategist at Miller Tabak and Co. in New York, said in a telephone interview. “That’s hindering the advance in the dollar, which built a head of steam earlier in the month.”