The Dollar slid on Wednesday as investors debated the outlook for interest rates in the US and Europe given statements from central bank officials in recent days. Investors expect a euro-zone rate rise as soon as July based on comments from ECB President Jean-Claude Trichet last week, although some of the bank's policymakers have whispered expectations of further rate rises.
But ECB board member Juergen Stark said the central bank is not considering a series of rate rises.
Fed Vice Chairman Donald Kohn said that a steady rise in energy prices has fueled an inflationary psychology in the United States and could be a problem if it does not reverse.
Investors will look to today’s US retail report for further clues about the state of the US economy.


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