Dollar feels the heat ahead of Bernanke testimony

The dollar struggled to regain its footing on Tuesday after a steep decline, while the euro hovered near a one-month high as investors bet the Federal Reserve will stick to its easing course even as the European Central Bank talks of tightening.

Fed Chairman Ben Bernanke is expected to remain cautious about the economy at his semi-annual testimony before the Senate Banking Committee starting at 1500 GMT.

In the words of New York Federal Reserve Bank President William Dudley: "We're still very far from achieving our dual mandate of maximum sustainable employment and price stability." more