Dollar boosted by stocks, Yellen

THE dollar has regained some ground, boosted by strength in regional equity markets on the back of prospective new US Fed chief's Senate testimony.

Janet Yellen's remarks saw the Aussie dollar rise against a weaker US dollar.

THE Australian dollar has regained some ground, boosted by strength in regional equity markets on the back of prospective new Federal Reserve chief Janet Yellen's US Senate committee testimony.

At 12pm AEDT today, the Australian dollar was trading at 93.23 US cents, up from 93.15 US cents early today but still down from its 93.52 cents close yesterday.

Ms Yellen told her confirmation hearing on Friday morning (AEDT) the central bank would do whatever it could to back a robust US economic recovery.

She said the US economic stimulus program "cannot continue forever" but policymakers had "the will and commitment" to strengthen growth and the jobs market.

US and Asian stock markets were higher, amid greater confidence that the US Federal Reserve will wait a bit longer before tapering its stimulus program.

"The Aussie dollar has just found a bit of support because regional equities are a sea of green," Westpac senior currency strategist Sean Callow said.

"Asia has given the big thumbs up to Janet Yellen's appearance before the Senate, so we have strong gains in regional equities and that seems to be enough to inspire at least a bit of Aussie buying."

Bond futures prices were higher.

At 12pm AEDT, the December 10-year bond futures contract was trading at 95.855 (implying a yield of 4.145 per cent), up from 95.850 (4.150 per cent) yesterday.

The December three-year bond futures contract was at 96.900 (3.100 per cent), up slightly from 96.890 (3.110 per cent).

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