Dollar gains ahead of central bank action The dollar reclaimed some ground on Wednesday as investors positioned themselves ahead of potential risks from a number of data releases and central bank events. Most important of these is the semi-annual testimony to US Congress delivered by Federal Reserve chairman Ben Bernanke, at which he could hint further about future plans for the gradual withdrawal of monetary stimulus. "Bernanke will confirm the extreme "data dependency" of the Fed's future policy steps," said Annalisa Piazza at Newedge Strategy. However market rates should reflect the current economic conditions and expectations for a more solid improvement in activity would justify higher rates. The dollar climbed 0.2 per cent to $1.3140 against the euro, and up 0.2 per cent to Y99.32 versus Japan's yen. Sterling was weaker against both the dollar and the euro ahead of monthly unemployment data and the publication of the minutes from the Bank of England's July Monetary Policy Committee meeting. The UK's labour market has shown some gradual improvement in recent months, and while jobless claims are expected to have fallen again, the overall unemployment rate is set to remain at 7.8 per cent. Investors will be more focused, however, on the split in the voting over additional QE at the last MPC meeting, Mark Carney's first as Bank governor. The minutes may also reveal plans for forward guidance. The pound fell 0.3 per cent to $1.5115 versus the dollar, and was down 0.2 per cent to £0.8701 against the euro. Sterling also fell against the yen, down 0.1 per cent at Y150.15. Australia's dollar fell after recording its biggest two day advance in nearly two years. Stronger than expected growth data from China, Australia's biggest trading partner, and a slightly more hawkish tone on inflation in the minutes from its central bank's last policy meeting drove the Aussie 2.3 per cent higher during Monday and Tuesday. On Wednesday, however, the currency fell 0.6 per cent to $0.9198 versus the US dollar.