The European Central Bank is exploring ways to directly help small and medium-sized companies as a way to boost the recession-hit eurozone economy directly, said Benoit Coeure, A member of the bank's executive board. Coeure, speaking at a conference south of Paris, did not say how exactly the policy would work and stressed that the ECB would not intervene to replace "other actors" including struggling banks burdened by non-profitable assets. Coeure said the ECB "can only act within its mandate" and would allow the transfer of private sector risk onto its balance sheet.

By Sakari Suoninen and Martin Santa AACHEN, Germany/BRUSSELS (Reuters) - The European Central Bank still has room to maneuver should the euro zone economy continue to worsen after it cut interest rates to a new record low last week, ECB policymakers said on Wednesday. The ECB cut its main rate to 0.5 percent last Thursday.

By Sophie Knight and Lisa Twaronite TOKYO (Reuters) - The dollar languished well below last week's 4-1/2-year high against the yen on Wednesday, ahead of testimony from the U.S. Federal Reserve chief after two regional Fed presidents hinted that the central bank will continue its bond-buying scheme.

By Masayuki Kitano and Vidya Ranganathan SINGAPORE (Reuters) - Some Asian stock markets rose on Wednesday following a positive lead from Wall Street, with Japan's Nikkei reaching a 5-1/2 year high and staying firm as the Bank of Japan stood pat after unleashing massive stimulus last month. European stocks are expected to inch lower with markets taking a breather from a month-long rally before U.S. Federal Reserve Chairman Ben Bernanke's testimony to Congress.