FOREX-Dollar cheered by Bernanke comments

The dollar advanced broadly on Tuesday after Federal Reserve Chairman Ben Bernanke warned about the inflationary impact of a weak currency, suggesting the central bank is not likely to cut interest rates further this year.

In a speech before the International Monetary Conference Central Bankers' Panel in Barcelona, Bernanke said the Fed is carefully monitoring developments in the currency market.

We are attentive to the implications of changes in the value of the dollar for inflation and inflation expectations and will continue to formulate policy to guard against risks to both parts of our dual mandate," he said, referring to the Fed's twins goal of ensuring sustainable growth and low inflation.