RTTNews - The dollar remained stuck in the mud versus other major currencies Wednesday morning in New York as traders looked to Capitol Hill for a second day of testimony on monetary policy by Federal Reserve Chairman Ben Bernanke.
Devoid of any major economic data during the day, traders might closely watch earnings numbers that continue to roll out amid hopes that recovery may kick in later this year.
Yesterday, Bernanke acknowledged that the U.S. economy is showing signs of stabilization and that the stimulus package that authorities pumped into the global economy late last year probably helped to avoid a collapse of the financial system. However, he insisted that interest rates are likely to remain very low for some time.
Mortgage applications climbed despite rising borrowing costs last week. The Mortgage Bankers Association's total loan applications index rose by a seasonally adjusted 2.8% to 528.9 last week, even with 30-year mortgage rates jumping to 5.31%.
The dollar touched a weekly low of 93.22 versus the yen overnight, and was little changed at 93.50 approaching 8 am ET. Versus the euro, the dollar was range-bound near 1.4200, having stabilized since hitting a 6-week low of 1.4276 on Tuesday.
Eurozone industrial new orders dropped 0.2% in May from the previous month, following a revised 0.7% decrease in April, the Eurostat report revealed Wednesday. Economists were looking for a monthly growth of 1.9%.
The buck turned lower against the sterling, giving back some gains from earlier in the week. Its been a choppy stretch of late for the pair, leaving the dollar little changed from June 1. Late in June, the buck touched a 7-month low near 1.6750, but has since found its footing.
The minutes from the Bank of England showed that all nine members of the Monetary Policy Committee unanimously decided to retain the Bank Rate at a historic low of 0.5% and to continue with its quantitative easing steps totaling GBP 125 billion.
The dollar barely budged from C$1.1000 versus the loonie, unable to rally away from monthly low of C$1.0963, set yesterday.
The Bank of Canada kept its overnight rate target at 0.25% Tuesday, and on Wednesday releases its monetary policy report update.
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