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Forex - Dollar slips vs. rivals as Bernanke says recovery on track

Published 06/09/2010, 11:59 AM
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Investing.com – The U.S. dollar slipped against other major currencies on Wednesday, as Federal Reserve Chairman Ben Bernanke said the U.S. economic recovery was on track, despite Europe's debt crisis.

The greenback was down against the euro, with EUR/USD jumping 0.7% to hit 1.2054 after Bernanke made the comments in a speech to the House Budget Committee.

In prepared comments, the Fed chief said the U.S. economy "appears to be on track to continue to expand through this year and next."

Meanwhile, the dollar slid versus sterling and the Swiss franc, with GBP/USD advancing 0.81% to hit 1.4588 and USD/CHF slumping 0.79% to hit 1.1433.

Earlier in the day, official data showed that while Britain posted a wider-than-expected trade deficit in April, the previous month's deficit was narrower than earlier thought.

The greenback was also down against its Australian, Canadian and New Zealand counterparts: AUD/USD rose 0.73% to hit 0.8337, USD/CAD shed 0.82% to hit 1.0389 and NZD/USD surged 0.92% to reach 0.6732. In addition, the greenback slid against the yen, with USD/JPY dropping 0.01% to reach 91.45.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.74%.

The dollars' decline against its major counterparts also came after Reuters published a report that Chinese exports in May grew about 50% from a year earlier, far above expectations.

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