Dollar Advances as Bernanke Says Fed May Taper Soon

The dollar rose against most major counterparts as Federal Reserve Chairman Ben S. Bernanke said the central bank could taper its monthly bond purchases at its next few meetings if it can be confident of sustained gains in the economy.

The greenback earlier touched a one-week low versus the euro as Bernanke told Congress the U.S. economy remains hampered by high unemployment and government spending cuts, and tightening policy too soon would endanger the recovery. The yen slid against the dollar and euro after the Bank of Japan affirmed a plan to double the monetary base over two years and its statement showed no concern about rising bond yields.