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NEW YORK: The dollar firmed on Wednesday in the absence of major economic data as the euro was pressured by ongoing worries of tough economic sledding ahead in the European region.
At 2100 GMT, the euro was fetching 1.4745 dollars compared with 1.4783 dollars in New York late on Tuesday. Against the Japanese currency, the dollar rose to 109.88 yen from 109.67.
"The dollar is consolidating gains against (the euro, sterling and Swiss franc) and has not given in to any retracement," said Antonio Febres at PNC Bank. "This is dollar bullish and leaves the door open for further upside."
With scant economic news on tap, the markets focused on the economic outlook for the eurozone, which appears weaker than expected until recently, which could force the European Central Bank to cut rates. A cut would make euro investment comparatively less attractive.
The euro hit a record high 1.60 dollars in mid-July but on Tuesday the single currency sank to a six-month low of 1.4631 dollars. Last week, the dollar also reached its highest level since January against the yen.
"The once resilient eurozone economy is slowly succumbing to the downward pressures of a strong euro, a slowing global economy and tight credit conditions," said Antonio Sousa, chief strategist at Forex Capital Markets.
"Looking ahead, I expect the euro to fall further and test 1.40 dollars."
Sterling was weaker after the minutes from the Bank of England's rate-setting meeting held on August 7 when policymakers voted 7-2 for a second month running to leave borrowing costs at 5.00 percent.
The pound was at 1.8613 dollars compared with 1.8676 Tuesday in late New York trade while the dollar stood at 1.0990 Swiss francs after 1.0914.
- AFP/so
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