The euro bounced back Tuesday, shrugging off the latest worries about Ireland and helped by a large purchase by at least one major U.S. bank. The yen, meanwhile, failed to weaken against the dollar for long after the Bank of Japan cut interest rates to zero and introduced more monetary easing. The Reserve Bank of Australia also signaled a more dovish approach to policy by leaving its interest rates unchanged for the fifth month in a row. The central bank had widely been expected to raise rates. The dollar wasn't helped by the latest comments from Fed Chairman Ben Bernanke, who pointed to the success of the bank's recent quantitative easing and suggested that more easing could help. 'Bernanke's comments have heightened expectations for more quantitative easing in November,' said Jane Foley, senior currency strategist at Rabobank International. So although the dollar initially rallied against the yen after the Bank of Japan's rate announcement, the U.S. currency soon fell back with the market now waiting to see if the latest Institute of Supply Management survey for non-manufacturing later Tuesday raises speculation for more quantitative easing even more. The forecast is for the index to have risen to 52.0 last month from 51.1 in August. The euro got some help from the latest euro-zone purchasing managers' index for service industries, which was revised up to 54.1 from 53.8. This came as the single currency was already being pushed higher by what traders described as a $1 billion purchase of the euro against the dollar by one major U.S. bank. The euro gains were made despite a warning from Moody's that it could soon downgrade Ireland's credit rating and another warning from the Irish government that a general election may have to be called if the December budget isn't passed. Ireland is having to introduce further emergency austerity measures to help the government bailout the country's banking system. See how the euro bounced against the dollar: http://www.dowjoneswebservices.com/chart/view/4681 The RBA's decision to leave rates unchanged but maintain its tightening bias initially hit the Australian dollar but any losses in the Aussie are expected to be brief as the RBA is still expected to hike rates again next month instead. The dollar's weakness, meanwhile, drove it down to under CHF0.9700 for the first time since March 2008 while the dollar index fell under 78.0 for the first time since late January. By midmorning, the euro had climbed to $1.3786 from $1.3690 late on Monday in New York, according to EBS. The single currency also made it up to Y114.85 from Y114.20 while the dollar fell to Y83.28 from Y83.44. The U.S. currency bounced only briefly to Y83.99 after the Japanese rate cut was announced. The dollar is down at CHF0.9675 from CHF0.9721 while the pound has risen to $1.5891 from $1.5837, helped not only by dollar weakness but the latest U.K. service sector PMI, which rose more than expected to 52.8 from 51.3 in August.