The world's reserve currency advanced Thursday against the 17-nation euro following sworn testimony of U.S. Federal Reserve Chairman Ben Bernanke, according to published reports.
Bernanke said the Fed is capable of preserving the integrity of the world's largest economic system amid troubles, such as the sovereign debt crisis attacking euro zone nation's banks, markets and public finance systems, Reuters reports. But he did not say any methods of monetary easing are being planned.
"If we decide that further action is required, then of course we have to decide what action is appropriate or what communications are appropriate," Bernanke told the Joint Economic Committee, according to Bloomberg. "We do have options that we can consider."
Economy-prompting methods often pull down the value of the greenback against counterpart currencies but since he did not commit to any of those methods, the U.S. dollar has been emboldened.
But the debt crisis in the 17-nation bloc and the likelihood of tightening in the U.S. do pose issues that the U.S. should seriously consider, Bernanke said, according to Bloomberg.
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