The dollar continued to edge lower versus the resurgent sterling but was steady against most other majors on Tuesday in New York, as traders paused to hear from a trio of top officials regard the government's role in saving insurance giant AIG.
Fed Chairman Ben Bernanke and Treasury Secretary Tim Geithner will appeared before a House Financial Services Committee, expressing dismay about the bonuses paid to AIG executives despite their failure to prevent the firm's near-collapse.
Geithner pledged to work on improving the regulatory structure Bernanke pledged to work more closely with the Treasury in order to prevent another situation.
The buck extended its recent losses versus the sterling, slipping to a month and half low of 1.4777. With the loss, the dollar moved further away from a 23-year high of 1.3501, set in January.
Tuesday, the Office for National Statistics said UK's annual inflation accelerated to 3.2% in February from 3% in January. Economists had expected consumer price inflation to slow to 2.6%. Month-on-month, consumer prices were up 0.9%, faster than a 0.3% rise expected by economists.
The dollar firmed up a bit versus the euro Tuesday, rising slightly to 1.3545. On Monday, the dollar hit a 10-week low of of 1.3735, but has since been steady.
The Eurozone recorded a current account deficit of EUR12.7 billion in January, on a seasonal and working day adjusted basis, larger than a deficit of EUR7.6 billion in December, a report by the European Central Bank said Tuesday.
The dollar extended its gains from the previous session versus the yen, making its way back toward the elusive 100 mark, before leveling off around mid-day. The buck rose to 98.50, having pared most of its steep losses from last week.
The board members of the Bank of Japan suggested that the Japanese economy may begin to recover from the current recession in the second half of this year at the earliest, minutes from the February 18 and 19 monetary policy meeting revealed on Tuesday.
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