Dollar Is Strong
MARKETSCOPE : The dollar was strong early Tuesday after September Producer Price Index news.
News hit of a higher-than-expected 1.9% rise in the September PPI. Excluding food and energy, the index rose 0.3%, slightly ahead of consensus estimates.
Investors braced themselves for more interest rate hikes from the Federal Reserve for some time to come, as Chairman Alan Greenspan grapples with inflation.
The US dollar index had rallied to better than three-month highs in overnight dealings, peaking at 90.49, and just shy of 2005 the highs of 90.78 seen on July 8, according to Action Economics.