LONDON, Aug 31: The dollar fell against the euro on Friday as investors absorbed comments by Federal Reserve chairman Ben Bernanke on recent market turmoil and searched for clues about the next move for US interest rates.

In late European trading, the euro rose to $1.3642, from $1.3628 in New York late on Thursday, reaching a high of $1.3719 during the day, its highest level since August 9.

The dollar fell to 115.79 yen, from 115.86 yen on Thursday.

Bernanke, in his first speech since turmoil gripped financial markets at the beginning of the month, reassured that the US central bank was ready to smooth problems in the credit markets.

The Federal Reserve will act “to limit the adverse effects” of the mortgage crisis on the economy, Bernanke said.

The dollar has strengthened in recent weeks because of its status as a safe-haven in times of uncertainty, but calmer trading and expectations of falling interest rates have enabled the euro to claw back losses recently.

The euro was changing hands at $1.3642, against $1.3628 late on Thursday, 157.98 yen (157.90), 0.6761 pounds (0.6774) and 1.6465 Swiss francs (1.6414).—AFP