Dollar mixed amid EU summit on Greece crisis

NEW YORK: Dollar trading was mixed Thursday morning as European leaders met to work out a rescue package for Greece and Federal Reserve Chairman Ben Bernanke testified to Congress about ending emergency aid to markets.

The 16-nation euro fetched $1.3332, down slightly from $1.3338 late Wednesday in New York.

In Asian trading overnight, however, the euro briefly slipped below $1.33 for the first time since May 2009, falling as low as $1.3285. Late last year, it traded above $1.51.

Debt crises in several European countries, particularly Greece, have driven the euro lower. On Wednesday, credit ratings agency Fitch Ratings also downgraded Portugal's debt.

At a two-day European summit that began Thursday in Brussels, EU leaders and politicians wrangled over the best way to help Greece. Germany, the largest economy in the EU, says any loan plan should be a last resort and should include aid from the International Monetary Fund.

In the U.S., meanwhile, Bernanke affirmed that record-low rates were still needed to stimulate economic activity.

He was also set to answer questions from Congress about how the Fed would end emergency aid measures that were put into place during the financial crisis.

The Fed has begun a "normalization" process in an attempt to head off inflation as the economy recovers.

It is seen as a step toward raising interest rates from close to zero. Higher rates, or the prospect of higher rates, can prompt investors to transfer funds into dollar-denominated investments, seeking higher yields. That pushes up the value of the dollar.

In other morning trading in New York Thursday, the British pound edged up to $1.4898 from $1.4893 late Wednesday, while the dollar gained to 92.46 Japanese yen from 92.10 yen.

The U.S. currency fell to 1.0694 Swiss francs from 1.0722 francs and slid to 1.0210 Canadian dollars from 1.0249 Canadian dollars.