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Dollar Strengthening

MARKETSCOPE : The dollar strengthened Wednesday, as supply and demand dynamics triggered a rebound and investors continued watching U.S. inflation.

The dollar was up to 115.87 near closing time, from 115.38 yen earlier Wednesday. Market players bet that the Federal Open Market Committee will raise rates 25 basis points to 4% at next Tuesday's meeting to combat the perceived inflation rise. Investors continued wondering what happens after Federal Reserve Chairman Alan Greenspan leaves his post during the coming months, following news in recent days of Bernanke's nomination to take his place on Feb. 1.

The euro moved to 1.2073 from 1.2060 earlier Wednesday. The sterling was 1.7746 from 1.7764.

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