The U.S. currency moved towards a 4 year high against the EUR on speculation U.S. policy makers will reiterate that the economic recovery is gaining pace. The greenback gained to $1.1946 per euro from $1.1973 yesterday. The Dollar climbed as high as $1.1877 per euro on June 7, the strongest since March 2006. Against the yen, the U.S, dollar was flat at 91.34.
Currency traders also absorbed comments from Federal Reserve Chairman Ben Bernanke late Monday. He said he didn't expect the U.S. economy to suffer a double-dip recession. The Dollar may continue to advance vs. the EUR on speculation the Federal Reserve will begin to normalize its monetary policy before the ECB with the U.S. economy recovering at a faster pace. Analysts said that both these factors are supportive of a strengthening Dollar.