The US dollar declined versus its major counterparts on Wednesday as the US Federal Reserve Chairman Ben Bernanke supported the stance for additional stimulus measures in case of further deterioration in US economy. Bernanke while addressing the House Financial Services Committee commented, “The possibility remains that the recent weakness may prove more persistent than expected and that deflationary risks might reemerge, implying additional policy support.”

The euro benefited the most due to weakening US dollar. The euro surged to 1.414 versus the greenback on Wednesday as compared to 1.4074 on Tuesday’s North American trading session. Before the remarks of Ben Bernanke, the euro remained under pressure and touched the day’s low of 1.3975 against the US dollar.

The dollar index DXY which measures the US dollar’s performance against its major six rival currencies declined 75.213 on Wednesday as compared to 76.028 on Tuesday’s late trading hours.

The US dollar plunged to 78.99 versus the Japanese Yen on Wednesday as compared to 79.40 on late Tuesday. As per Japanese Finance Minister Yoshihiko Noda the US dollar’s declined versus the Yen was one sided.

The euro however surged versus the Japanese Yen to 111.74 on Wednesday as compared to 111.51 on Tuesday’s late trading session.

The Australian dollar jumped to 1.0747 versus the US dollar as compared to 1.0603 on late Tuesday. The US dollar also declined versus the British Pound as the pair GBP/USD surged to 1.6101 as compared to 1.5994 on Tuesday.