Currency markets quiet ahead of Bernanke speech

by US Federal Reserve chairman Ben Bernanke later this week, dealers said.
The greenback was flat against the yen as Japanese authorities continued efforts to halt the rise of the Japanese unit with the threat of intervention, after Finance Minister Yoshihiko Noda upped his rhetoric on Monday.
The dollar was trading at US$1,4371 against the euro from US$1,4356 on Monday.
Against the Japanese currency, the dollar was flat at 76,75 yen from 76,78 yen, having recovered some ground after hitting a post-war low of 75,95 Friday. The euro fetched 110,36 yen from 110,19.
Many investors were looking ahead to Bernanke’s Jackson Hole Speech on Friday amid speculation the central bank chief may outline fresh steps to stimulate the ailing US economy.
Analysts expect Bernanke to give an unspecific pledge to offer more measures if needed, but he is seen as unlikely to announce another round of quantitative easing.
Despite its gains against the dollar, the euro remained under pressure from concerns that EU leaders are not moving quickly enough to address the sovereign debt problems affecting the eurozone, noted John Kyriakopoulos at National Australia Bank.
“The latest concerns were sparked by German Chancellor (Angela) Merkel, noting she would not support the issuance of eurobonds as it would not solve the current debt crisis.”
However, any stronger-than-expected showing in Germany’s ZEW economic sentiment indicator for August, which could see the euro rise against the dollar to the mid-US$1,44 mark, Junichi Ishikawa, FX analyst at IG Markets Securities, told Dow Jones Newswires.
The safe-haven swiss franc (CHF) saw mixed trade. The dollar edged down to 0,7895 swiss francs from 0,7900. The euro fetched 1,1345 swiss francs compared to 1,1284 Monday.
“The weakness in the CHF occurred after the Swiss National Bank supposedly intervened in the forward market, although this is unconfirmed at this stage,” noted Kyriakopoulos.
The franc, considered a safe haven currency, has risen around 20 percent against the euro and 25 percent against the dollar since 2009, as investors flee economic turmoil abroad, pressuring the central bank to act. -AFP.