Summary Dollar fell after Federal Reserve Chairman Ben Bernanke championed the Fed's easy-money policy.
NEW YORK (AFP) - The dollar fell on Thursday for the second day in a row after Federal Reserve Chairman Ben Bernanke championed the Fed's easy-money policy.
The euro was at $1.3092 around 2100 GMT, up from $1.2988 at the same time on Wednesday.
In intraday trade, the euro hit $1.3207, its highest level in nearly three weeks.
The dollar also fell against the Japanese currency, to 98.90 yen from 99.72 yen late Wednesday.
The euro, meanwhile, was unchanged at 129.50 yen.
"The US dollar pared the sharp decline sparked by the Fed Chairman Ben Bernanke, but we may see a larger correction ahead of the next FOMC interest rate decision on July 31 as the central bank head continues to endorse a highly accommodative policy stance," said David Song at DailyFX.
Bernanke's comments on Wednesday -- signaling an accommodative monetary policy "for the foreseeable future" -- deepened the mystery over the policy-setting Federal Open Market Committee's timetable for easing its QE stimulus, pushing traders who had bet on a higher dollar to unwind their positions, analysts said.
Some traders expect the FOMC to begin tapering the Fed's $85 billion-a-month bond purchases in September.
"It is important to realize that Bernanke said nothing to change the prospect of a reduction in asset purchases this year," said Kathy Lien of BK Asset Management, who is predicting a September pullback.
The dollar weakened against other major currencies, falling to 0.9468 Swiss franc from 0.9583 franc.
The pound rose to $1.5185 from $1.5034 the prior day.
