The euro appreciated vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.4960 level and was supported around the $1.4825 level. Further strong gains in U.S. equities prices created demand for higher-yielding currencies, including the common currency. The dollar was also pressured lower by a story that the Federal Reserve Bank of New York is making preparations to utilize reverse repurchase agreements to remove liquidity from the financial system. The New York Fed clarified its position, saying the tests it is conducting are a matter of prudent advance planning by the Federal Reserve, and no inference should be drawn about the timing of monetary policy tightening. The dollar also came off following remarks from Federal Reserve Chairman Bernanke who warned policymakers need to remain alert against unsustainable global imbalances including U.S. budget deficits. Data released in the U.S. today saw the October NAHB housing market index decline to +18 from the prior reading of +19. Data to be released in the U.S. tomorrow include September producer price inflation numbers. In eurozone news, eurozone finance ministers are convening and will likely discuss the strength of the common currency as it races toward the psychologically-important $1.50 figure. Eurogroup Chairman Juncker said the continued appreciation of the euro along the lines of recent weeks could slow the economic recovery in Europe. Some dealers believe the ECB is inching closer to selling euro in the market through intervention while others believe the ECB will maintain a hands-off approach. ECB member Bini Smaghi warned lending to companies will continue to move lower before improving. Euro bids are cited around the US$ 1.4445 level.