20 February 2006, 15:47  Dollar in tight range

The U.S. dollar kept to a tight range against major rivals on Monday, with trading quiet because of the U.S. Presidents Day holiday. The euro fell to $1.1935 from $1.1939 on Friday, and the dollar was trading at 118.17 yen from 118.14 yen. The market will be looking toward Tuesday's release of the Federal Open Market Committee minutes from the last U.S. rate decision meeting and consumer price index data on Wednesday. "Concerns over a housing-market slowdown as well as comments that underlying inflation remains well contained could put the U.S. dollar under further pressure," speculated analysts from BNP Paribas. Meanwhile, economists surveyed by MarketWatch say the core CPI probably rose 0.2% in January. That is "enough to keep the Fed's bias toward higher rates intact," in the words of Brian Bethune, chief U.S. economist for Global Insight.

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