The dollar fell on Thursday against the euro after Federal Reserve chief Ben Bernanke signaled that policy makers were ready to lower interest rates if the U.S. economy continued to deteriorate.

The Fed ``will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks,'' Bernanke said today in a statement to lawmakers at the Senate Banking Committee in Washington. ``A significant worsening in financial conditions or in credit availability would certainly be a warning bell that we need to take further action.''

The dollar fell to $1.4640 per euro at 5:06 p.m. in New York, from $1.4573 late yesterday. It dropped to 107.86 yen from 108.33 yen. The yen dropped to 157.90 per euro from 157.87.

Ben Bernanke