The dollar was in a holding pattern versus other major currencies Wednesday morning in New York, pausing from a recent downtrend against its European counterparts.
Wall Street was set for a lackluster open Wednesday after President Barack Obama said last night in a televised press conference that he saw signs of progress on the economic front.
We will recover from this recession, Obama said. But it will take time, it will take patience.
Trading on Wednesday could be impacted by the release of reports on durable goods orders and new home sales. Fuel supplies figures are also due out. Traders are also likely to keep an eye on speeches from Fed Presidents Janet Yellen and Sandra Pianalto.
A day after taking heat from Congress about the AIG bailout fiasco, Treasury Secretary Tim Geithner will talk about the economic and financial crises at the Council on Foreign Relations in New York.
The dollar was slightly firmer versus the euro Wednesday morning, rising a penny to 1.3500. With the modest advance the dollar continued to stabilize following last week's big losses.
Wednesday, a monthly survey from the Munich-based Ifo Institute for Economic Research showed that German business confidence deteriorated to 82.1 in March from 82.6 in February. This was the lowest reading since the survey began in 1991. The expected level for March was 82.2.
The dollar consolidated its efforts to steady versus the resurgent sterling Wednesday morning, holding near 1.4580 as preparations for next week's G20 meeting in London were underway.
Against the yen, the dollar was stable at 97.70, still unable to break up the elusive 100 mark. The Bank of Japan is placing its policy priority on securing market stability and facilitating corporate financing, given the current uncertain economic situations, the central bank's Deputy Governor Hirohide Yamaguchi said Wednesday.
China's central banker chief Zhou Xiaochuan on Tuesday repeated his call for a new global reserve currency managed by the International Monetary Fund.
Pointing out the dangers of relying on the one national currency without explicitly mentioning the dollar, Zhou insisted that an international reserve currency disconnected from individual nations would be able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies.
The acceptance of credit-based national currencies as major international reserve currencies, as is the case in the current system, is a rare special case in history, said Zhou in a statement released on the People's Bank of China website.
For comments and feedback: contact email@example.com