RTTNews - The dollar continued to firm up against the euro and sterling Wednesday morning in New York as world leaders gathered in quake-ravaged L'Aquila, Italy for the G8 summit.

Thought to be off the table are discussions about transitioning away from the dollar as the world's reserve currency. The Chinese quelled rumors earlier in the week that the subject of a new international reserve currency may be talked about in L'Aquila.

With global stock markets making a move to the downside, the dollar has been given a minor boost from increasing risk aversion. Still, the yen has outshined the dollar of late, as traders bet the Japanese economy may be in better shape than previously feared.

The dollar edged to its highest level since June 22 versus the euro, rising to 1.3860. The pair has been choppy over the past 6 weeks amid speculation that the euro area will be slow to recover from the global recession.

Meanwhile, the dollar rose to a monthly high of 1.6045 versus the sterling, having risen about 6 cents already this month.

German industrial production rose more than expected in May, data released by the Federal Ministry of Economics and Technology showed Wednesday.

Factory output rose 3.7% month-on-month in May after falling a revised 2.6% in April. The increase exceeded the forecast for a 0.5% rise.

The dollar failed to make up any ground versus the yen, creeping to a new 6-month low of 94.07.

Wednesday, results of the latest Eco Watchers Survey by the Japanese Cabinet Office revealed that the forward-looking index for the economy rose to 45.6 in June from 43.3 in May. The index has been on the rise in the first six months of this year.

Dow component Alcoa (AA) would kick-start the earnings season with the release of the second quarter results after the markets close for trading today. The aluminum major is expected to show a loss for the third consecutive quarter amid the economic crisis that has led to a sharp decline in prices for the company's products

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