Associated Press – The dollar was mixed Monday against major currencies as uncertainty persisted over European debts.

Markets are also looking to testimony later this week from Federal Reserve Chairman Ben Bernanke for further reassurance that last week’s hike in the discount rate on its emergency loans to banks did not signal a boost to the benchmark federal funds rate in the near future.

In morning trading in New York, the 16-nation euro traded at $1.3599, the same as late Friday. Meanwhile, the British pound edged up to $1.5497 from $1.5464, and the dollar fell to 91.20 Japanese yen from 91.71 yen.

In other trading Monday, the dollar rose to 1.0415 Canadian dollars from 1.0405 Canadian dollars, but was nearly flat at 1.0770 Swiss francs versus 1.0771 francs late Friday.

The European Union has given Greece a March 16 deadline to show improvements in its budget or face tougher spending cuts. Analysts say the prospect of a default continues to worry investors amid questions about the Greek government’s accounting methods and striking civil servants.

“The sovereign debt problems of the peripheral European economies will continue to weigh on the single currency, even though the Greek prime minister stated that his country was ahead of schedule on its budget cutting plans, and won’t need a bailout,” said Michael Hewson of CMC Markets in London in a research note.

Meanwhile, Fed chair Bernanke is expected to testify to Congress on Wednesday and Thursday after the central bank last week raised the cost of emergency borrowing for banks.

That triggered a rally in the dollar as investors took it as a vote of confidence in the financial sector’s recovery and a signal that the Fed was more likely to hike the federal funds rate, which strongly affects borrowing costs for U.S. consumers and businesses. It is currently at a range near zero.

Tightening U.S. credit tends to boost the dollar. Higher interest rates can make dollar-denominated investments yield higher returns, prompting investors to transfer funds.

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