In morning London trade, the euro eased to US$1.2620 from 1.2645 late in New York on Monday. The dollar firmed to 96.51 yen from 96.35 yen on Monday. Later on Tuesday, U.S. Federal Reserve Chairman Ben Bernanke was expected to testify in Congress, alongside Treasury Secretary Henry Paulson.

“The main focus (for foreign exchange trade Tuesday) is likely to be the appearance by Fed Chairman Bernanke (and) Treasury Secretary Paulson... before the House Financial Services Committee on the government’s implementation of the 700-billion-dollar financial rescue,” said Barclays Capital analyst David Woo.

Market players were still digesting news that ailing bank Citigroup had on Monday decided to cut its global workforce by a huge 50,000 people, the latest sign of deteriorating world economic conditions.

Elsewhere on Tuesday, the British pound traded mixed on news that 12-month inflation fell more sharply than expected, to 4.5 percent in October, from a 16-year high of 5.2 percent in September, as oil prices dropped.

The euro changed hands at US$1.2620 against 1.2645 late on Monday, at 121.57 yen (121.87), 0.8412 pounds (0.8440) and 1.5128 Swiss francs (1.5145).

The dollar stood at 96.51 yen (96.35) and 1.2011 Swiss francs (1.1977). The pound was at US$1.4972 (1.4982).

On the London Bullion Market, the price of gold advanced to US$736.80 an ounce from 734 late on Monday.

Hong Kong gold prices closed lower on Tuesday at US$739.80-740.80 an ounce, down from Monday’s close of US$742.00-743.00. It opened at US$738.80-739.80.

Earlier in Tokyo afternoon trade, the greenback firmed to 96.64 yen, up from 96.35 in New York late Monday. The euro fell to US$1.2623 from 1.2645 but edged up to 121.99 yen from 121.87.

The dollar rose to NT$33.26, up from 33.12 on Monday, to 49.97 Philippine pesos from 49.60, to 11,950 Indonesian rupiah from 11,850 and to 1,438 South Korean won from 1,408.

The greenback also rose to S$1.5265 from 1.5236 and to 35.02 Thai baht from 34.98.

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