Bernanke suggested interest rates will come forward to defend the dollar stabilized.

Federal Reserve (Fed) Chairman Ben Bernanke on the dollar, reversing a long tradition of silence, in the June 3 opening defend the dollar, that dollar weakness will continue to make the U.S. inflation. .He also pointed out, Fed unlikely to cut official interest rates further. .Boosted by their speech, New York, U.S. currency rose against the euro and the yen. .<P> Analysts said Bernanke's speech on Tuesday clearly showed that, Fed has changed the weak dollar helped boost economic growth view, but that against the negative effects associated with inflation are more important. .</ P> <P> integrated media reports, Bernanke in an international monetary conference speech delivered by satellite, he noted that the Fed is aware that changes in value of the dollar and its impact on the relationship between inflation and inflation expectations, the Fed continued to .maintaining price stability and prosperity as much as possible to ensure that the determination of the employment market is to continue to keep the dollar strong and stable currency of the main factors. .</ P> <P> Also, Bernanke also said, Fed interest rate current position is appropriate, not only help to promote moderate economic growth and help restrain inflation. .The Fed will closely observe the development of the situation and is ready to act when necessary preparations. .</ P> <P> Bernanke said in the past, the weak U.S. dollar prices of imports caused by the magnitude is not significant. .Such talk is all gone now, he is now the argument is that the weak dollar leads to inflation, resulting in a risk. .In fact, Bernanke has been changed to the weak dollar and rising inflation expectations linked together. .</ P> <P> signs of accelerating inflation in the U.S. could make to the strategy of the Federal Reserve cut interest rates come to an end. .In view of inflation has picked up signs, the Fed lowered interest rates 3.25 PCT, the market expects U.S. interest rates will not decline. .The Fed now hope to make the U.S. economy to recover from the subprime crisis came at the same time, do not want to let the outside world as commodity prices rise and turn a blind eye. .</ P> <P> Bernanke also said the second quarter, the U.S. economy may be weak, but the second half of the economic conditions will improve and increase the pace of increase in 2009. .</ P> <P> addition, the U.S. Commerce Department said factory orders in April, the element of surprise to jump by 1.1%, than the market fell by 0.1% better than expected, mainly due to the outside world for the increased demand for oil and chemical industry. .U.S. orders for machinery and electrical equipment increased, meaning that overseas demand for the United States increased this will help the country's factories operating, because the weak dollar made U.S. products more attractive overseas. .</ P> <P> Bernanke's speech, the dollar go up. .New York trading late Tuesday, electronic trading, the euro was $ 1.5461, down from $ 1.5539 late Monday; U.S. dollar against 105.16 yen, higher than the 104.55 yen late Monday; 162.58 yen against the euro late Monday .against 162.49 yen; sterling 1.9645 U.S. dollars, down from $ 1.9672 late Monday; dollars from 1.0372 francs late Monday rose to 1.0418 Swiss francs. .</ P>.