Dollar mixed in Asia after Bernanke comments

TOKYO: The dollar was mixed in morning Asian trade after Federal Reserve head Ben Bernanke said the bank's stimulus policies would remain in place, while Europe concerns saw investors flocked to the safe-haven yen.

Bernanke quelled speculation over an early end to the Fed's huge monetary easing programme, telling a Senate panel in Washington that it was having an impact but was still needed to get the economy back on track.

The dollar weakened to 91.63 yen in early Tokyo trade, from 91.93 yen late Tuesday in New York, while the European single currency weakened to $1.3046 from $1.3061 and to 119.56 yen from 120.08 yen.

Bernanke's comments suggested he "still appears to believe that the benefits (of easing) outweigh the costs, but the net benefits will continue to shrink as the Fed buys more assets this year," said London-based Capital Economics.

The Fed chief also sounded the alarm over huge US budget cuts looming within days which could deal a heavy blow to the fragile US economy.

Italy's inconclusive national elections raise fears about whether debt-hit Rome would continue with its unpopular austerity measures aimed at paying down its debt.

Investors fear failure to do so could have repercussions around the eurozone.