NEW YORK (Dow Jones)--The euro pared earlier losses against the dollar after falling to session lows on a weak open for U.S. stocks trading.
The Dow Jones Industrial Average recently moved higher on the day, giving the euro a modest bounce.
Still, the common currency is slightly lower versus the dollar compared to late-day Tuesday, but is trading inside a narrow range.
The dollar is considered a safe-haven asset, and usually gains against the euro during periods of uncertainty. The yen gains against both the dollar and euro in the same way.
Earlier, the euro also fell to an intraday low of Y132.10 and the dollar declined to Y93.09.
While stock moves will likely direct currency movement for the rest of the session, traders will be paying attention to the second day of Federal reserve Chairman Ben Bernanke's testimony to Congress.
Wednesday morning in New York, the euro was at $1.4184 from $1.4197 late Tuesday. The dollar was at Y93.53 from Y93.66, according to EBS. The euro was at Y132.65 from Y133.01. The U.K. pound was at $1.6385 from $1.6436, and the dollar was at CHF1.0692 from CHF1.0683.
Stocks sentiment wavered after the release of some disappointing second quarter earnings reports following a string of stronger company filings.
Morgan Stanley's (MS) shares dropped after reporting that second-quarter income plunged 87% on charges related to mergers and its repayment of government funds and weakness at its wealth-management and institutional securities businesses. Wells Fargo & Co.'s (WFC) shares were also sold on reported mounting loan troubles, despite an 81% rise in earnings last quarter.
The euro fell as low as $1.4155 Wednesday morning, one day afetr advancing to a six-week high of $1.4278. Slipping crude futures also worked to fade euro strength.
