The USD was down against most major currencies yesterday as concerns over Euro-Zone debt problems waned and investors turned to riskier assets. The EUR saw its biggest single-day gain against the USD since July. The USD's sharpest declines were against higher-yielding, commodity-linked currencies such as the Australian and New Zealand Dollars, as improved investor sentiment sent stocks and commodities higher.

The Dollar Index which tracks the greenback against a trade-weighted basket of six major currencies declined 0.6% to 79.634. A better than expected result from the Empire State Manufacturing Survey released Tuesday had little effect on currencies, but helped keep risk appetite strong following gains in European equities.

A heavy news day is expected from the U.S today, with the release of the Building Permits at 13:30 GMT and Industrial Production at 14:15 GMT. With risk appetite returning to markets, better than expected results might actually support the EUR and other higher yielding currencies vs. the Dollar. The release of the FOMC meeting minutes at 19:00 GMT may provide support for the Dollar over any sign of monetary tightening sooner then expected.