The greenback took a breather after recent volatile gains and ended the day marginally higher in tandem with rising U.S. yields on Tuesday and as investors booked profits from usd's recent winning streak.  
  
Reuters reported rapid U.S. interest rate increases have raised the risk of a recession, but it is likely to be caused by an outside shock rather than from a collapse of a U.S. economy that remains resilient, St. Louis Fed president James Bullard said on Tuesday.

"Any time you are trying to...go between buildings on the high wire you're worried about a big gust of wind coming up," Bullard said at an economic forum in London, referring to the path the Fed is trying to walk between controlling U.S. inflation without triggering a serious downturn.  
  
Versus the Japanese yen, dollar remained under pressure in Asia and dropped to session lows at 144.07 in early European morning. The pair then erased its losses and rose to an intra-day high at 144.90 in New York afternoon in tandem with U.S. treasury yields.  
  
The single currency traded with a firm bias in Asia and gained to session highs at 0.9670 at European open before retreating to 0.9607 in European morning. Despite a brief bounce to 0.9652 ahead of European open, price met selling there and fell to an intra-day low of 0.9570 in New York morning on renewed usd's strength before staging a recovery.  
  
The British pound also traded with a firm undertone in Asia and gained to 1.0837 at European open. The pair then traded sideways in European morning and retreated to 1.0660 in New York morning before rebounding.  
  
Data to be released on Wednesday:  
  
U.K. BRC shop price index, Australia retail sales, Japan coincident index, leading index, Germany Gfk consumer confidence, France consumer confidence, Italy business confidence, consumer confidence, industrial sales, U.S. MBA mortgage application, goods trade balance, wholesale inventories and pending home sales.

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