The dollar dipped this afternoon after signs emerged that the Federal Reserve might end the series of rate rises.

This afternoon the dollar stood at 1.8030 against the pound and was at 1.2543 to the euro.

Fed chairman Ben Bernanke hinted that the bank might move to end the current rises, causing an immediate reaction.

Speaking to the Joint Economic Committee in Congress, Mr Bernanke admitted the 15 consecutive rises may continue.

CALYON's Mitul Kotecha told AFX that he had "effectively indicated that the Fed is close to a pause in its tightening cycle".

"The prospects for the dollar are clearly negative following the speech and given the emphasis on the current account," he added.

Mr Bernanke had sought to reassure analysts when he arrived in his job to succeed Alan Greenspan, with the Fed indicating 'business as usual' with a series of rises, although it appears this is now set to end.