The dollar slipped against the 15-nation euro, which bought $1.4673 in New York trading compared with $1.4661 late Wednesday. The British pound rose to $1.9713 from $1.9642.

Bernanke didn't recommend specific provisions or endorse a specific plan, but spoke to the general concept of an economic rescue package. It is likely that any package will include tax rebates.

Bush said he would expound on program details in two speeches Friday.

Although politicians differ over what provisions should be part of any economic stimulus package, there's widespread agreement that tax rebates similar to the $300-$600 checks provided in 2001 are likely to be part of the measure. The country last suffered a recession in 2001.

Any such package also must be temporary to avoid making a big boost to the federal government's budget deficits and adding to the country's long-term fiscal burdens.

David Solin, a partner at Foreign Exchange Analytics in Essex, Conn., said the announcement will not have devastating implications for the U.S. dollar.

"What Bernanke has done is just repeat what he has said before about the idea of taking substantial action if need be," Solin said. "There has not been any kind of huge reaction in the dollar, and we don't expect there will be much of an impact."

However, Solin said if the short-term package turns out to be disappointing, the dollar could drop to new lows over the next few months.

The dollar traded as low as 106.58 Japanese yen before recovering to 107.00 yen — still below the 107.60 yen it bought late Wednesday. The U.S. currency also fell to 1.1003 Swiss francs, compared with 1.1010 francs, and rose to 1.0299 Canadian dollars from 1.0234.

Bernanke addressed the U.S. Congress' House Budget committee about the economy, with analysts and markets looking for insights into what might be done to help blunt the ill effects of a deep housing slump and credit crisis.

The big worry is that those problems will force consumers to clamp down on spending and businesses to cap hiring.

Those economic woes have prompted Wall Street to clamor for additional Federal Reserve interest rate cuts. The U.S. central bank has cut rates three times to 4.25 percent and signaled that more may be in the offing.

In contrast, the European Central Bank has kept open the option of raising its rates — currently at 4 percent — to curb the threat of rising inflation.