UNLEASH THE CLAM! WE GO HAM!

The dollar was within 0.2 percent of a one-week low against the euro on bets Federal Reserve Chairman Ben S. Bernanke today may signal more stimulus is needed to spur a recovery in the world’s largest economy.

The yen declined versus most of its 16 major counterparts as Asian stocks extended a global rally, damping demand for lower-yielding currencies. The euro remained higher after its biggest gain in three months against the yen yesterday amid speculation the European Central Bank will act to rein in the region’s debt crisis after leaving its benchmark interest rate at a record low. Australia’s dollar rose after data showed the nation’s employers unexpectedly added workers in May.

“The U.S. dollar is certainly susceptible to indications that the Fed is looking at QE3, considering that long positions have been built up to near-record levels,” Mike Jones, a Wellington-based currency strategist at Bank of New Zealand Ltd, said referring to a third round of debt purchases known as quantitative easing. “It’s the rhetoric that really matters for markets.”

The dollar traded at $1.2563 per euro as of 1:06 p.m. in Tokyo after sliding 1 percent to $1.2582 in New York yesterday, when it touched $1.2586, the weakest since May 28. The U.S. currency added 0.2 percent to 79.35 yen. The 17-nation euro was at 99.68 yen from 99.63 yesterday, when it advanced 1.6 percent, its biggest gain since Feb. 24. The Australian dollar strengthened 0.2 percent to 99.50 U.S. cents.

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