The U.S. dollar showed mixed trading against other major currencies in early Asian trading on Monday as investors awaited Federal Reserve Chairman Ben Bernanke's semi-annual testimony to the U.S. Senate tomorrow and a slew of earnings' reports from U.S. companies this week.
While the dollar resumed its decline against the yen, it recovered slightly from multi-day lows against the euro, pound, franc, Aussie and the New Zealand dollar. But the greenback moved sideways versus the Canadian dollar.
Markets are seeking for clues on the Fed's stance over a stronger monetary policy to support the U.S. recovery. Bernanke said on June 20 that policy makers will be prepared to take additional steps if necessary, including additional asset purchases.
Central banks in Europe, China, Brazil and South Korea have lowered their benchmark interest rates this month, while the Bank of Japan unexpectedly expanded its asset-purchase program, its main monetary policy tool.
Extending its last week's 0.5 percent decline, the U.S. dollar slipped to near a 4-week low of 79.07 against the yen. The next downside target level for the dollar-yen pair is seen at 78.8. The pair ended Friday's trading at 79.20.
The dollar is currently worth 1.2240 per euro and 0.9815 against the franc, compared to 5-day lows of 1.2265 and 0.9795, hit respectively in early deals.
The dollar also followed a similar trend against the pound, recovering from an 11-day low of 1.5596. At present, the pair is worth 1.5570.
After hitting a 5-day low of 0.7987 against the NZ dollar at 5:15 pm ET, the U.S. dollar bounced back. The greenback is presently worth 0.7960 against the kiwi.
Meanwhile, the US dollar that fell to a 4-day low of 1.0254 against the Australian dollar at 5:15 pm ET rebounded thereafter. The pair is currently trading at 1.0220.
But the dollar changed little against the Canadian dollar, with the pair now trading at 1.0147.
Looking ahead, Swiss first quarter industrial production, Eurozone final CPI for June and trade data for May are slated for release in the European session.
The U.S. retail sales for June and business inventories for May are expected in the New York morning session.
by RTT Staff Writer
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