USD weaker against most major currencies

The US dollar declined versus the euro and most other major currencies after remarks from US Federal Reserve chairman Ben Bernanke seemed to indicate that the Fed will cut US interest rates again soon.

Mr. Bernanke also said that credit will likely remain “more expensive and less available” for the present, as well as that he expects growth to pick up later this year.

The dollar traded at $1.4627 to the euro and at $1.9718 to the pound in late morning trade in New York.

The pound also strengthened versus both the dollar and the euro on decreased sentiment for another UK interest rate cut soon.

The pound traded at 74.18p to the euro around 11:30 a.m. in New York.

The yen was weaker against the dollar early in the day as investors continued to sell the Japanese currency to finance carry trades, but it recovered some of those losses once the US markets opened lower.

The yen traded at ¥107.9700 to the dollar in late morning in New York, while it traded at ¥157.9278 to the euro and at ¥212.8952 to the pound.

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