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Old May-01-2006, 20:17
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Default Dollar rebounds on Bernanke report, U.S. data

TOKYO, May 2 (Reuters) - The dollar rose on Tuesday, extending a rebound from a one-year low against the euro and a seven-month low versus the yen, on a report that the Federal Reserve chief said markets had misread his congressional testimony last week.

The dollar was initially buoyed on Monday by U.S. figures that showed strong factory growth and a pickup in inflation. The data challenged a view in the market that the Fed is nearly done with a two-year run of raising rates. Then CNBC television reported late on Monday that Fed Chairman Ben Bernanke told one of its reporters that the central bank was still aggressive on inflation and he was concerned that people would see him as dovish.
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