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Dollar Eases Versus Major Rivals Ahead Of Beige Book


The dollar was generally weaker Wednesday morning in New York, as the Federal Reserve prepared to release its Beige Book, a compilation of anecdotal evidence on economic conditions from each of the 12 Federal Reserve districts.

Traders will be looking for clues about the whether the Fed will conduct further asset purchase programs in support of the nation's economy. The report is out at 2 pm ET.

Stocks are indicated to bounce back on Wall Street following yesterday's big sell-off.

A massive earthquake with an initial magnitude of 8.7 struck off the west coast of Northern Sumatra in Indonesia on Wednesday, triggering a tsunami alert for the entire Indian Ocean region.

The dollar dropped to a monthly low of Y80.55 versus the yen, extending a two-week downtrend after hitting an 11-month peak above Y84.

The Bank of Japan on Wednesday said the nation's economy is expected to return to a moderate recovery path.

The dollar eased to $1.3160 versus the euro, trimming last week's gains.

Germany's wholesale price inflation slowed for the second consecutive month in March, data released by the Federal Statistical Office showed Wednesday.

The wholesale price index increased 2.2 percent on an annual basis in March, slower than the 2.6 percent growth seen in February.

The buck also weakened versus the sterling, slipping back to $1.59 from near $1.5820.

Retail sales in the UK rebounded in March as unusually warm weather encouraged spending on clothing, footwear and outdoor leisure, the British Retail Consortium (BRC) said Wednesday.

Retail sales rose 1.3 percent on a like-for-like basis from March 2011. This followed a 0.3 percent decline in February and was better than economists' forecast for no growth. On a total basis, sales were up 3.6 percent against a 1.9 percent decline last year.

The export & import price indexes for February are due out at 8:30 am ET. The consensus estimates call for a 1 percent month-over-month increase in import prices and a 0.3 percent increase in export prices.

by RTTNews Staff Writer

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