Dollar rises before Bernanke testimony

LONDON (AFP) — The dollar climbed against leading currencies on Thursday amid investor caution after a Wall Street slump and ahead of congressional testimony by Federal Reserve chairman Ben Bernanke, dealers said.

The British pound meanwhile fell against the dollar before an interest rate decision from the Bank of England, which was expected to hold borrowing costs at 5.0 percent, and amid fresh data on the housing market downturn.

The European single currency fell to 1.5703 dollars in early London trade on Thursday, from 1.5745 dollars late on Wednesday.

Against the yen, the dollar rose to 107.29 yen from 106.72.

"The dollar is moderately stronger (on Thursday) ... compared to yesterday's European close although trading against the majors has been within fairly narrow ranges," said ABN Amro analyst Melinda Smith.

"Equity market performance and oil prices still remain key drivers for the dollar, with a ...