TOKYO - The dollar was steady in Asia Tuesday after getting a brief boost from a rare comment on currencies by US Federal Reserve chief Ben Bernanke, who voiced support for a strong dollar.
The dollar was at 89.04 yen in Tokyo midday trade, against 89.05 in New York late Monday. The euro slipped to 1.4966 dollars from 1.4972 and to 133.25 yen after 133.32.
Bernanke's remark in a speech Thursday caused the dollar to shoot up against the euro, but the rally soon fizzled out as traders bet that the low level of US interest rates would continue to pressure the greenback.
The dollar lost ground against the yen Monday as dealers bet that the Fed is unlikely to raise its key interest rate any time soon from the current level of close to zero. Investors generally prefer currencies offering high yields.
"This bout of selling pressure on the dollar appears to be easing following Bernanke's remarks, which signalled US interest rates will stay low for the time being," said Yosuke Hosokawa, head of forex group of Chuo Mitsui Trust.
"But the dollar is likely to face another bout of selling," Hosokawa said.
Bernanke said the central bank was closely monitoring exchange rates with the dollar having lost its gains from safe haven flows during the height of the financial crisis.
"We are attentive to the implications of changes in the value of the dollar and will continue to formulate policy to guard against risks to our dual mandate to foster both maximum employment and price stability," the Federal Reserve chief told the Economic Club of New York.
"Our commitment to our dual objectives, together with the underlying strengths of the US economy, will help ensure that the dollar is strong and a source of global financial stability."
But "the reality is that the Fed is probably quite comfortable with a weak dollar given the positive impact on the economy and lack of associated inflation pressures," said Calyon analyst Mitul Kotecha.
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