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Forex - Dollar dips lower, awaits Bernanke clues on monetary policy fate

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Investing.com - The dollar traded mixed to lower against most of its peers on Monday as investors bought and sold the currency ahead of a speech from Federal Reserve Chairman Ben Bernanke, hoping the country's top central banker will shed light on any policy shifts.

In U.S. trading on Monday, EUR/USD was up 0.26% at 1.3378.

Official eurozone data released earlier revealed that industrial production among member countries fell 0.3% in November, down for the third consecutive month, missing expectations for a 0.1% increase.

The data did little to dampen the single currency's gains against the greenback for long, especially after European Central Bank governors last week voted unanimously to keep benchmark interest rates unchanged at 0.75%.

Meanwhile in the U.S., investors waited for Fed Chairman Ben Bernanke to speak later.

Public comments from leading Fed officials as well as the minutes from the Fed's December monetary policy meeting have investors guessing that Fed officials may be spending more time wondering when to consider winding down stimulus measures, including the Fed's monthly USD85 billion bond-buying program.

The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.30% at 1.6082.

The dollar hit highs against the yen not seen since 2010 after Japanese Prime Minister Shinzo Abe's said he wanted to appoint a "bold" Bank of Japan chief, with USD/JPY up 0.23% at 89.39.

Current Bank of Japan Governor Masaaki Shirakawa's term ends in April, and expectations that a replacement will favor Abe's calls for looser policy and greater tolerance for inflation sent the yen slumping against most currencies on Monday.

The dollar, meanwhile, was up against the Swiss franc, with USD/CHF trading up 0.81% at 0.9209.

The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.14% at 0.9836, AUD/USD up 0.32% at 1.0571 and NZD/USD trading up 0.54% at 0.8412.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.12% at 79.52.

On Tuesday, the U.S. will publish government data on retail sales and official data on the country's producer price index.

In addition, the U.S. is to release data on manufacturing activity in New York state and a report on business inventories.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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