The dollar soared versus the euro Wednesday morning, after Italian Prime Minister Silvio Berlusconi on Wednesday confirmed a presidential statement suggesting that he will step down. Berlusconi will resign after Italian Parliament approves a package of austerity measures and economic reforms that may help drive borrowing costs down from record highs. "I will resign as soon as the law is passed, and, since I believe there is no other majority possible, I see elections being held at the beginning of February and I will not be a candidate in them," Berlusconi was quoted on Wednesday as saying in a conversation with the editor of La Stampa newspaper. The dollar rose to a weekly high of $1.3620 versus the euro, a gain of two cents compared to the previous session. Risk aversion also helped the dollar rise o $1.5950 versus the sterling, away from a weekly low near $1.6125. The dollar improved to C$1.02 versus its Canadian counterpart, but remained weak near Y77.60 versus the safe haven yen. U.S. mortgage applications increased 10.3 percent in the week ending November 4, following 0.2 percent rise the previous week, the Mortgage Bankers Association said Wednesday. Federal Reserve Chairman Ben Bernanke is scheduled to make welcoming remarks at the Federal Reserve "Conference on Small Business and Entrepreneurship during an Economic Recovery" at 9:30 am ET. The Commerce Department is due to release its wholesale inventories report at 10 am ET. Economists expect wholesale inventories at the end of September to show a 0.6 percent increase. The global economy has entered a "dangerous and uncertain phase" and a failure to act together at this stage will push the economy towards "a downward spiral of uncertainty", International Monetary Fund Managing Director Christine Lagarde warned Wednesday. "If we do not act, and act together, we could enter a downward spiral of uncertainty, financial instability, and a collapse in global demand," she said in a speech at the International Finance Forum in Beijing.