Bernanke: Fed watches dollar, key economic variable

WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke said on Wednesday the value of the dollar impacts oil prices but probably has less of an impact on consumer prices.

"We obviously watch the dollar very carefully," Bernanke told the House of Representatives' Financial Services Committee in answering questions after delivering semi-annual testimony. "We look at what the dollar is doing ... and we try to set monetary prices appropriately."

He added there is not much evidence that investors have shifted away from the U.S. dollar.

(Reporting By Joanne Morrison; Editing by James Dalgleish)