The dollar rose for a third day against the yen after Federal Reserve Chairman Ben S.
Bernanke said an increase in inflation expectations is a ``significant
concern.''
The currency also gained against the
pound and the Australian dollar as traders increased bets the Federal Reserve
will raise interest rates this year.
The euro pared losses against the
dollar on speculation the European Central Bank will keep its benchmark rate at
a six-year high of 4% at a meeting today. The New Zealand dollar fell the most in
five months after the central bank said it was likely to cut rates.
EUR/USD
printed lows on $1.5380 before rate rebounded to $1.5433.
GBP/USD is
under pressure, sliding to $1.9489. Later rate rose back to $1.9510.
USD/JPY increased
from Y105.20 to Y105.70.
Apart the BOE and ECB rate
decisions, the focus will be on ECB’s head Trichet speech at 12:30 GMT.
Before that (at 10:00 GMT) Germany manufacturing
orders report is schedule to come.