2013.05.2207:07:58UTC+00Dollar dips ahead of Bernanke testimony

The dollar dipped and benchmark Bund futures rose on Wednesday as expectations hardened that the head of the U.S. central bank will later in the day signal no tapering off of the bank's ultra-easy monetary policy.

Ben Bernanke, who speaks before the Joint Economic Committee of the U.S. Congress at 1400 GMT, is expected to follow the line set by two other Federal Reserve officials, who struck a dovish tone on the economy on Tuesday.

"I don't think Bernanke is going to signal any tapering off at this point which could put the dollar under some pressure," said Ian Stannard, head of European foreign-exchange strategy at Morgan Stanley.

Against a basket of major currencies, the dollar . lost 0.1 percent to 83.77 in early European trade, while the euro added 0.13 percent to $1.2920.

German Bund futures were 24 ticks higher at 144.57, but gains were seen limited before the issuance of a new 10-year Bund later this session.

The pan-European FTSEurofirst 300 share index, which has risen to 5-year highs this month, slipped 0.1 percent to 1,252.59 points although the euro zone's blue-chip Euro STOXX 50 index edged up 0.1 percent to 2,825.59 points.

Earlier Japan's Nikkei reaching a 5-1/2 year high and clinging to its gains as the Bank of Japan stood pat after unleashing massive stimulus last month.