* Bernanke says U.S. growth below potential
* Chinese official comments pressure dollar
* Dollar rebounds from record low vs Swiss franc
* Euro hits one-month high vs dollar; ECB in focus (Recasts; updates prices, adds quotes, Bernanke comment)
By Gertrude Chavez-Dreyfuss
NEW YORK, June 7 (Reuters) - The dollar tumbled late on Tuesday, after Federal Reserve Chairman Ben Bernanke's comments about the economy's lackluster growth affirmed expectations U.S. interest rates will remain low for a long time.
He made no indication, however, that the central bank will undertake further monetary easing.
The dollar was down sharply before Bernanke spoke after a senior Chinese currency regulator warned about investing too heavily in dollar-denominated assets at a time when Washington is pursuing loose monetary and fiscal policies.
In prepared remarks at a banking conference in Atlanta, Bernanke said U.S. growth "looks to have been somewhat slower than expected," but added that the latest bout of economic weakness would not last long. He expects stronger growth in the second half. For details, see [ID:nW1E7GV010]
"My interpretation of his comments is that there would be no QE3 (further quantitative easing), which means monetary policy would remain loose, interest rates will remain low. It would be steady as she goes," said Brian Dolan, chief currency strategist at Forex.com in Bedminster, New Jersey.
"We saw some weakness in the dollar, although it was limited."
In late afternoon trading, the euro rose 0.8 percent to
$1.46890
The dollar fell to session lows beneath 80 yen following
Bernanke's remarks but last traded at 80.055 yen
Dollar weakness was earlier triggered by comments from a Chinese currency official.
In an article posted on the website of the China Finance 40 Forum, a Beijing-based think tank, Guan Tao said his country must be alert to the risk of holding too many dollars. [ID:nL3E7H71AA]
Guan's comments were later removed from the website.
Traders said they added to existing pressure on the dollar and underscored recent moves by China and others to add more euros, yen, and other currencies to their dollar-heavy portfolios.
The dollar as a result hit a record low against the Swiss
franc at 0.83270
The euro, meanwhile, benefited from news that plans for a second bailout of Greece are taking shape, with a proposal for a three-year package worth 80 to 100 billion euros set to be ready in the next two weeks, euro zone official sources said. [ID:nLDE7560TC]
As Greece concerns abate, central bank policy has moved back to the forefront. Rate differentials are a primary driver for the euro's nearly 10 percent gain against the dollar this year.
The Federal Reserve is expected to hold interest rates at zero percent well into 2012. The European Central Bank raised rates in April and is expected to hint at another hike in July when it holds its next policy meeting on Thursday.
Jens Nordvig, global head of G10 FX strategy at Nomura Securities in New York, said at the Reuters 2011 Investment Outlook Summit in New York that he expects the dollar to "continue its weak trend" if global economic data is modestly weak.
The dollar will benefit from risk aversion only if global data becomes much weaker or "if there is another banking crisis," he said. (For more on the Reuters 2011 Investment outlook Summit, see [ID:nN03185799])) (Additional reporting by Julie Haviv and Steven C. Johnson; Editing by Andrew Hay)