Bernanke remarks help USD gains

The US dollar was helped and the yen hurt by remarks from US Federal Reserve chairman Ben Bernanke, which led analysts and investors to believe another interest rate cut is in the cards.

The greenback traded at $1.4700 to the euro and at $2.0579 to the pound in early afternoon in New York as fears of a recession dimmed in reaction to the possibility that interest rates could be cut when the Fed meets on 11 December.

Meanwhile, both the yen and the Swiss franc seemed ready to record their biggest declines in over two years in relation to the US dollar.

The yen fell against every major currency except the Swiss franc.

In early afternoon trade in New York, the yen was trading at ¥110.8100 to the US dollar while the Swiss franc was at SFr1.1264 to the dollar.

Elsewhere, the yen was at ¥162.8907 to the euro and at ¥228.0304 to the pound, while it took SFr1.6559 to buy a euro and SFr2.3181 to buy a pound.

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