Dollar Strengthens After Tuesday's Plunge
MARKETSCOPE : The dollar was strengthening early Wednesday following its plunge late Tuesday.
Richmond Federal Reserve President Lacker said U.S. policymakers are not finished hiking rates. In Nov. 1 Federal Open Market Committee meeting minutes released on Tuesday, U.S. Federal Reserve members had expressed concern about the possibility of going too far in tightening credit. The Fed has raised rates 12 times since 2004 in an effort to control inflation.
The euro was off at $1.1796 level, after having rallied Tuesday. Markets showed little reaction to reports that eurozone September industrial orders rose 1.1%, slightly better than expected, and that Italian consumer confidence rose to its highest level in three years. The sterling was steady at the $1.7259 level.
The European Central Bank President Trichet said in recent days that the continent's first rate rise in December would not signify the start of a steady tightening cycle, according to RBC Capital's Monica Fan in London.
The dollar was off at 118.54 yen. Japan is closed for a holiday. U.S. markets close Thursday for Thanksgiving.