Janet Yellen, the president of the San Francisco Federal Reserve Bank stressed that the Federal Reserve should keep interest rates as close to zero as possible for the foreseeable future.

An ongoing debate is arising from the Senate legislation attempts to strip the Federal Reserve of much of its bank- and consumer-protection supervision authority.

The Australian dollar fell to its lowest level in 10 weeks as traders sold higher-yielding assets before year-end. Australia’s dollar also declined as investors raised bets that the central bank will raise interest rates, damping demand for the nation’s assets.

European Central Bank President Trichet on Tuesday backed comments by U.S. Federal Chairman Ben Bernanke on Monday about the importance of a strong dollar, helping to stress international concern about the U.S. currency.

The Bank of England on Wednesday boosted its forecasts for growth and inflation but still sees subdued price pressures and a slow recovery as the economy limps out of its deepest recession in decades.

The U.S. dollar has slumped to fresh lows in Asia-Pacific trade amid the backdrop of continued stock-market gains and associated risk appetite.
A spate of recent comments from global finance officials concerned about the weakening dollar has failed to lift the dollar as investors bet major central banks won’t back up their remarks by buying dollars.

Dollar Failed to continue the strengthening journey it has stared in the morning, and slumped to a new 14-month low versus major counterparts on Tuesday as investors favored gold, viewed as the most stable currency. Investors are getting more hesitant to hold the dollar with its losses which was only softened by a drop in U.S. stocks.