Dollar Closes Slightly Higher Ahead of Federal Reserve Meeting
Dow Jones Newswires</br></br>NEW YORK -- The dollar failed to stage much of a comeback against the euro yesterday, ahead of a Federal Reserve rate-setting meeting, hurt by indications that U.S. industrial production is growing at a slower pace than anticipated.</br></br>Meanwhile, the Swedish krona fell sharply following a vote by Swedes to resoundingly reject membership of European Monetary Union, although it recouped some of its losses. Late yesterday in New York, the euro was trading at 9.1439 kronor, sharply higher than 9.0760 kronor late Friday, but well below the 9.20 kronor it had reached on the back of the rejection.</br></br>Observers said the result illustrates the gap between the goals and visions of the E.U.'s political and business elite on one hand and the mindset of their constituents on the other.</br></br>In the major currencies, the dollar was able to extend its gains modestly against the yen, as investors remain wary of currency-market intervention after the seemingly heavy presence of the Bank of Japan, which acts on behalf of the government, last week. Japan has been a dominant force in currency markets this year as it seeks to stop the yen from hitting 115 yen, a level thought to be the pain threshold for many exporters.