The greenback rose broadly against major currencies on Wednesday due to the rally in U.S. stocks. The single currency fell versus the dollar from 1.4743 to 1.4639 as German industrial production, exports and retail sales unexpectedly declined, suggesting growth in Europe's largest economy is slowing.

Germany's retail sales, adjusted for inflation and seasonal swings, fell 1.3% in November (expectation was an increase of 1.1%), after upwardly revised 2.3% drop in the previous month. German industrial production also unexpectedly fell by 0.9% in November versus the forecast of a rise of 0.5% and the upwardly revised 0.1% increase in October.

The British pound earlier declined to a over 9-month low of 1.9554 as traders expect the Bank of England will lower rates again on Thursday after a report showed U.K. consumer confidence dropped to the lowest in almost a year and the country's largest clothing retailer reported its first same-store sales decline in 2 1/2 years. Euro rallied to a record high against sterling to 0.7504 before retreating. Interest-rate futures showed more than 50% chance that Bank of England will cut interest-rate cut to 5.25% from 5.5%.

Poole said it is ‘too early to tell’ whether the U.S. economy will tip into a recession. He also said risks to economic growth are more ‘uncertain’ than inflation. Fed Chairman Ben S. Bernanke will speak about the economic outlook in Washington tomorrow.

The greenback rose from 108.78 to 110.13 on Wednesday due to renewed cross selling in jpy on the late rally in U.S. stocks. Dow Jones index fell initially by more than 88 points on worries of a recession before rebounding strongly on bargain hunting and closed up 146 points on Wednesday. The Standard and Poor’s 500 index was up 18.94 points or 1.36%. The Nasdaq Composite index was up 34.04 points or 1.39%.

The ECB will also hold a monetary policy meeting on Thursday and is widely expected to keep interest rates unchanged at 4.0%. Investors are closely watching comments from ECB President Jean-Claude Trichet at 13:30GMT after the rate announcement.

Thursday will see the release of Japan’s leading indicators, U.K. trade balance, U.S. jobless claims and wholesale inventories.