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Dollar Index Higher

S&P MARKETSCOPE: The dollar index is up 0.11 to 82.42 in early Wednesday trading before several economic reports following Chinese stock market skid... euro off at $1.3427 a Bloomberg Eurozone PMI fell to 48.4% in May from 54.6 in April, German PMI fell to 47.3% from 55.6%, French PMI fell to 50.1% from 58.6% and Italian PMI rose to 47.7% from 47.4%... also French housing starts dropped 9.5% y/y in the three months to April and were down -2.8% y/y in the past 12 months... building permits rose 0.1% m/m in the three months to April and were up 4.4% y/y in the last 12 months... sterling off at $1.9751... Dollar up at 121.70 yen, but euro down at 163.19 yen after Japanese industrial production fell.

The dollar was down at 7.6466 Chinese yuan... traders said there was little immediate reaction to the sell-off in the Shanghai stock market on the hike in the Chinese stamp tax on securities transactions -- an apparent effort to cool stock market speculation... observerss said yuan appreciation has accelerated following U.S.-China talks last week... the PBoC on May 18 announced widening in the daily USD-CNY trading band to 0.5%.

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