The dollar fell against the euro Wednesday ahead of US data and comments due from Federal Reserve chairman Federal Reserve chairman Ben Bernanke on the outlook for the world's biggest economy. The European single currency rose to 1.3639 dollars in London trade from 1.3613 dollars in New York late on Tuesday. Against the Japanese currency, the dollar climbed to 93.53 yen from 93.15 yen on Tuesday.
The Federal Reserve was to release its Beige Book survey on the US economic outlook while Bernanke was due to testify before a congressional panel in Washington. US retail sales for March were also to be released on Wednesday. "Any knee-jerk dollar strength on a punchy retail sales release would likely fade in the face of this ongoing dovishness" from Benanke, said Daragh Maher, a foreign exchange analyst at French bank Credit Agricole.
Massive Federal Reserve spending is still needed to underpin the crisis-battered US economy, Bernanke told US lawmakers in late March. Underscoring the depth of the crisis that has rocked the global economy, Bernanke said large-scale Fed intervention was still needed, along with record-low US interest rates. Ahead of the US market opening, the euro firmed against the dollar after strong Singapore growth data boosted confidence in the global economy and encouraged greater risk appetite, Asian dealers said.
Singapore on Wednesday said it expects its economy to expand up to 9.0 percent this year, sharply raising its forecast as the city-state staged a dramatic turnaround from recession. The Monetary Authority of Singapore also said separately it was adopting a tighter monetary policy stance to tame inflation as the recovery gains traction.
In London trade on Wednesday, the euro was at 1.3639 dollars against 1.3613 dollars on Tuesday, at 127.56 yen (126.83), 0.8846 pounds (0.8848) and 1.4380 Swiss francs (1.4344). The dollar stood at 93.53 yen (93.15) and 1.0543 Swiss francs (1.0535). The pound was at 1.5418 dollars (1.5380).
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