The dollar was steady against the yen on Tuesday after Federal Reserve chief Ben Bernanke said risks to the U.S. economy had decreased and signaled a willingness to fight inflation.

The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so, Bernanke said at a conference today, according to a prepared statement. The Federal Open Market Committee will strongly resist an erosion of longer-term inflation expectations.

The comments could indicate that the Fed will move to raise interest rates.

The dollar rose to 106.71 yen at 1:27 p.m. in Tokyo from 106.69 yen in late U.S. trading on Monday. The euro was down to 1.5576 euros from $1.5844 on Monday. The yen was trading at 106.71 yen per dollar.

Ben Bernanke Inflation