Posted On: February 29, 2012
NEW YORK, Feb 29 (Reuters) - The dollar rose against the euro and yen on Wednesday after analysts said the U.S. Federal Reserve chairman hinted the bank was in no rush to expand its balance sheet on the same day data painted a brighter picture of the U.S. economy.
The euro accelerated losses against the dollar to hit a near one-week low and the greenback rose sharply against the yen after the Fed's Ben Bernanke told a congressional panel the country's unemployment rate had fallen faster than expected.
Bernanke struck a less dovish tone than in the past, analysts said, suggesting a third round of quantitative easing was unlikely in the near future. [...]
"That does put the spotlight on the better growth differentials on the left side of the Atlantic," said Joe Manimbo a markets analyst with Western Union Business Solutions in Washington, D.C.
That three-year lending eased some immediate fears around the euro zone sovereign debt crisis, analysts said, but did not address longer-term worries in the region.
"The euro could struggle to rally now that we're beyond the LTRO," Manimbo said, citing lingering worries around the region's debt crisis, such as Ireland's referendum on the European Union's new fiscal treaty.
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