The dollar has weakened slightly versus its European rivals Wednesday, ahead of the release of the Beige book by the Federal Reserve, which is expected at 2:00 PM ET. The Beige Book is a compilation of anecdotal evidence on economic conditions from each of the 12 Federal Reserve districts.
Investors will be watching the report closely, to see if there are any indications that the Fed will conduct further asset purchase programs in support of the U.S. economy.
The greenback has rebounded slightly against the Japanese Yen on Wednesday, from Tuesday's one-month low of Y80.636, to around Y81.010.
The Bank of Japan on Wednesday said the economy is expected to return to a moderate recovery path as the pace of recovery in overseas economies picks up and as reconstruction-related demand after the earthquake disaster gradually strengthens.
The dollar has remained near the middle of the range it has been moving in since the beginning of the trading week versus the Euro, hovering around $1.3100.
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 fell a one-week low of $1.5937 versus the pound sterling Wednesday, from 1.5808 on Tuesday.
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.
Prices of goods imported to the U.S. surged higher in March, driven by higher prices in both the fuel and non-fuel sectors, according to figures released Wednesday by the Department of Labor. March saw a 1.3 percent increase in overall import prices, the largest monthly increase since April of 2011. While most economists had predicted a large increase in import prices, few had expected it to be so large, with most expecting the increase to come in at 1 percent.
U.S. export prices als
o increased in March, rising by 0.8 percent, the largest increase since April of 2011. The export price growth exceeded the 0.3 percent increase predicted by most economists and builds on the 0.4 percent increase in February.
by RTT Staff Writer
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