Dollar mixed in Asian trade
The dollar was mixed in Asian trade Monday ahead of a key congressional testimony by US Federal Reserve chairman Ben Bernanke this week, analysts said.
The greenback traded around 94.72 yen, up from 94.17 in late US trade Friday while the euro rose to 1.4159 dollars from 1.4096 in the afternoon. Markets in Japan were closed Monday for a public holiday and were to reopen Tuesday.
Analysts said Bernanke's semi-annual congressional testimony over two days starting Tuesday would likely set the tone for the US dollar and financial markets for the rest of the year.
"Bernanke's semi-annual testimony on monetary policy and the economy before Congress is this week's main act," said Jan Lambregts, Hong Kong-based head of regional research with Rabobank.
"The Fed chairman's stage couldn't be more perfect for presenting the central bank's plans on how to reverse its unconventional measures once they have outrun their usefulness and the economy's considered back on track," he said, referring to the massive fiscal stimulus deployed by the US government.
Analysts from Singapore's DBS Bank said Bernanke was expected to touch on the US economy's recovery from recession and the Federal Reserve's immediate priorities.
"Unlike the past two years, this week's testimonies are not about preparing for more bad times," analysts from Singapore's DBS Bank said in a report.
"Instead, the message on the economy is likely to be of hope with a tinge of reality, with Fed policy prioritising recovery over inflation.
"Put simply, the worst is over and the US should be starting to expect positive GDP growth to emerge from the third quarter, thanks to the fiscal stimulus package."
In his testimony, Bernanke is also expected to maintain the same position as the Treasury Department that a strong greenback would benefit the US economy and that it should remain the world's anchor currency, analysts said.
Against Asian currencies, the dollar fell to 10,106.25 Indonesian rupiah from 10,185.00 on Friday, and to 47.97 Philippine pesos from 48.07.
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