US Economy: Dollar Falls as Bernanke Unsure When Monetary Stimulus to Unwind

The dollar dropped to a 16-month low against the euro after Fed Chairman Ben S. Bernanke said in his first press conference after a policy decision that he's unsure when the central bank will unwind stimulus.

The yen fell against all of its major counterparts as investors sought higher-yielding assets and Standard & Poor's cut Japan's debt outlook to "negative." The greenback slid for a seventh day versus the euro as Bernanke said the central bank will likely continue reinvesting maturing debt after its $600 billion bond-buying program expires in June.

"His language does not provide enough to change the dollar's downtrend," said Jessica Hoversen, a New York-based analyst at the futures broker MF Global Holdings Ltd. "The Fed believes that accommodative policy is still necessary, long-run inflation expectations remain stable and growth fragile."

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