Dollar hits fresh lows on Bernanke comments

0 Comments | AFP, April, 2006

NEW YORK (AFP) — The dollar took a beating as comments from US Federal Reserve Chairman Ben Bernanke were seen as a strong hint the US central bank is close to a pause in its rate-hiking cycle.

The greenback was further pressured by news that China's central bank was raising interest rates for the first time since 2004.

The euro jumped to 1.2535 dollars after 1.2451 late Wednesday in New York and at one point hit an eight-month high of 1.2547.

The dollar meanwhile fell to 114.14 yen against 114.69 on Wednesday.

Bernanke's comments to a congressional panel suggested "the Fed is closer to an end to its tightening cycle and that would be dollar-negative," said Mike Malpede, senior currency analyst at Man Global Research.

Bernanke told the Joint...