Dollar up after Bernanke speaks on debt crisis
NEW YORK (AP) — The dollar rose against the euro Wednesday after Federal Reserve Chairman Ben Bernanke testified that U.S. banks could handle a worsening European debt crisis.
Traders also bought dollars as borrowing rates in Spain crept higher, a sign that investors are worried that the country may have trouble paying its debt.
Bernanke said the U.S. banking system remains exposed to Europe, but "stress tests" conducted by the Fed found that U.S. banks could handle a worsening debt crisis there.
Meanwhile, the yield on Spain's 10-year bond rose to 5.36 percent, the highest since February. Spain's borrowing rates rose to nearly 7 percent in November on worries that Europe's debt crisis was spreading to bigger economies.
The euro fell to $1.3204 in late trading from $1.3232 Tuesday.
The British pound fell to $1.5858 from $1.5869. The dollar rose to 0.9131 Swiss franc from 0.9113 Swiss franc and to 99.21 Canadian cents from 99.15 Canadian cents.
The dollar fell to 83.47 Japanese yen from 83.69 yen.
