Finance News Update, what you need to know

WORLD FINANCE UPDATE:

The Australian dollar is higher following dovish comments from Federal Reserve chair Janet Yellen about the recovery of the US economy.

At 0630 AEDT on Tuesday, the Australian dollar was trading at 92.70 US cents, up from 92.31 cents on Monday.

And the Australian share market looks set to open flat despite strong gains on Wall Street after Federal Reserve chair Janet Yellen was dovish about the US economy's recovery.

At 0645 AEDT on Tuesday, the June share price index futures contract was up four points at 5,397.

ELSEWHERE:

WASHINGTON - Federal Reserve Chair Janet Yellen says the US economy still needs the Fed's extraordinary support measures, noting that the falling jobless rate masks weaknesses in the jobs market.

BRUSSELS - Eurozone inflation fell to 0.5 per cent in March, official data shows, the lowest rate since October 2009 at the height of the financial crisis, and amid concerns about the dangers of deflation.

PARIS - French public deficit and debt in 2013 are higher than previous government estimates, official data shows, dealing a fresh blow to President Francois Hollande a day after disastrous local polls.

LISBON - Portugal has taken a big step towards emerging from its debt bailout and regaining investor confidence by beating its budget target by a wide margin.

THE HAGUE - The Netherlands brought its public deficit back under the EU's 3.0 per cent limit in 2013 for the first time in five years, data shows.

PRETORIA - South African trade swung back to a surplus in February thanks to a leap in car exports, official data shows.

ISTANBUL - The Turkish economy grew by 4.0 per cent last year, official data shows, following an unexpectedly firm fourth quarter.

ZURICH - Switzerland says it is investigating a range of banks, including domestic leaders UBS and Credit Suisse along with top global houses, over suspicions they manipulated currency markets.

LONDON - British pharmaceutical giant GlaxoSmithKline has announced a five-year investment program for sub-Saharan Africa to fuel the company's growth and serve an area with "pressing health needs".