The National Bank of Kuwait (NBK) said in its weekly report that Federal Reserve Chairman Bernanke had told lawmakers that progress in reducing unemployment is likely to be "frustratingly slow" and repeated that the central bank is ready to take further steps to boost the recovery, while refraining from pledging any new policies.

The report quoted him as saying that growth is slowing as business investment cools in response to the European crisis and the prospect of fiscal tightening in the US at the same time, households are restraining spending as unemployment remains elevated and credit is hard to get.

The Chairman stated that easing tools include further purchases of assets, such as mortgage-backed securities, reducing the interest rate that the Fed pays on reserves banks keep with the Fed, and altering its communications on the outlook for interest rates.

Bernanke added that operation "twist" has been "effective in easing financial conditions and promoting strength in the economy. Large-scale asset purchases have also contributed to economic growth." At the same time, there are also questions about the "side effects and risks that may be associated, therefore they should not be used lightly." As for the US Dollar, it traded in a wide range against most of its major counterparts, especially the Euro and the Sterling Pound. Additionally, investors were highly awaiting the outcome of the Federal Reserve Chairman Bernanke's testimony to congress on Thursday, as economic data fuelled expectations for further quantitative easing from the Fed.

On Friday, the Dollar quickly recouped most of its losses and broke the range higher as Spanish worries ignited risk aversion in the market, pushing the Euro to trade at 2010 lows.

The Euro also traded in a wide range against the greenback. The currency traded between 1.2212 and 1.2310, testing both levels frequently throughout the week as markets lacked direction before the Federal reserve Chairman testified to Congress.

However, on Friday the Euro fell dramatically, and broke the 1.2200 level and reached a low of 1.2144 after Spain's Valencia region said it would seek government help to repay its debts, raising concerns that the Euro zone's fourth largest economy may have to ask for a full-scale international bailout. The single currency closed the week at 1.2157.

The Sterling Pound opened the week at 1.5566 and traded in a volatile manner towards the end of the week amid a number of negative economic data. On Friday, the currency reached its highest level in more than 3-years due to growing worries about Spain, which encouraged investors to seek alternatives to the Euro despite further evidence of a weakness in the UK.

The Sterling reached a high of 1.5735 but quickly dropped as investors realized the risks hovering over the British economy. The Pound closed the week at 1.5618.