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Johan Javeus, a foreign exchange strategist at the Stockholm-based SEB, commented: "Stock markets took a liking to what Bernanke said and this means that currencies more sensitive to the business cycle are recovering."
He added that the yen has weakened and has begun decoupling from mechanically following stock developments.
In early trading this morning, the dollar was up 0.1 per cent against the yen, while the euro increased by 0.3 per cent, just short of a three-month high against the Japanese currency, reports Reuters.
Meanwhile, data published today has shown that the German economy continues to be badly hit by the worldwide downturn.
Recently, Japanese prime minister Taro Aso met with US president Barack Obama and agreed to fight protectionism and retain the US dollar as the main currency in the world.
