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U.S. Dollar Weakens On Bernanke Comments

The U.S. dollar declined against most major currencies in early Asian deals on Tuesday after Federal Reserve Chairman Ben Bernanke said that the economy is "far from recovering from credit crisis."

In a speech at the Federal Reserve Bank of Atlanta Financial Markets Conference, in Stone Mountain, Bernanke suggested that US economy is yet to fully recover from the impact of the global financial crisis.

The greenback that closed yesterday's deals at 1.5894 against the pound and 0.9174 against the franc slipped to a new 1-week low of 1.5933 and a 5-day low of 0.9149, respectively. If the U.S. currency falls further, it may target 1.60 against the pound and 0.91 against the franc.

House prices in the United Kingdom improved in March, according to survey results released by the Royal Institution of Chartered Surveyors (RICS).

The RICS Home Price Balance for March was minus-10, compared to minus-13 in February

Against the New Zealand and Australian dollars the greenback reached fresh 1-weeks lows of 0.8242 and 1.0359 from Monday's close of 0.8218 and 1.0316, respectively. The next downside target level for the greenback is seen at 0.83 against the kiwi and 1.04 versus the aussie.

Activity in Australia's construction sector picked up slightly in March but remained in sharp contraction, according to survey results published today by the Australian Industry Group.

AIG's Performance of Construction index for March was 36.2, an increase of 0.6 points from February.

Also, Australia's business conditions improved modestly in March, along with a jump in confidence, a survey by the National Australia Bank (NAB) showed.

The business conditions index rose to 4 in March from 3 in February. The business confidence index advanced to 3 from 1 in the previous month

The U.S. currency dropped to a 5-day low of 1.3145 against the euro with 1.32 seen as the next downside target level. The pair closed Monday's deals at 1.3107.

Looking ahead, Swiss unemployment rate for March, German trade data, French industrial production and U.K. DCLG house prices for February are due in the European session.

At 10:00 am ET, U.S. wholesale inventories data for February is slated for release.

by RTTNews Staff Writer

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