LONDON (AFP) - The dollar firmed against the European single currency on Wednesday ahead of the publication of retail sales data in the United States.
In European trading, the euro fell to 1.4569 dollars from 1.4578 dollars in New York late on Tuesday.
Against the Japanese currency, the dollar eased to 107.28 yen from 107.32.
The dollar had earlier weakened in Asian trading, pressured by a revival in appetite for risk instruments after billionaire Warren Buffett offered to help out troubled US bond insurers, dealers said.
His proposal encouraged investors to seek potentially higher yields in riskier assets, weighing on the dollar, they added.
Players were meanwhile waiting for US retail sales figures due Wednesday.
"The data will remind us of the underlying weakness of the US consumer and the fact that a recession in the US will originate from the consumer," said Mitul Kotecha, head of foreign exchange research at Calyon.
Traders were also keeping a close watch on remarks by European officials amid speculation about a possible interest rate cut by the European Central Bank.
ECB president Jean-Claude Trichet, who had previously warned about the need for a rate rise to fight inflation, has toned down the hawkish stance recently, sparking speculation about the chances of interest cuts later this year.
On Wednesday, the Swedish central bank decided to raise its key rate by 0.25 percentage points to 4.25 percent.
"Inflation is expected to be high, while economic activity remains good," said the bank as it explained the reasons for hiking borrowing costs.
"A repo rate of around 4.25 percent over the coming year will contribute to bringing inflation back towards the target of two percent a couple of years ahead," it added.
Traders were also looking ahead to an interest rate decision in Japan on Friday, although no change is expected given the fragile state of the economy.
"The market does not believe that the Japanese economy is strong, so a rate hike is out of the question. Investors are bearish on the Japanese economy and on the yen," said Tomoko Fujii, head of economic strategy at Bank of America.
In Europe on Wednesday, the euro changed hands at 1.4569 dollars against 1.4578 late on Tuesday, at 156.22 yen (156.47), 0.7440 pounds (0.7437) and 1.6063 Swiss francs (1.6070).
The dollar stood at 107.28 yen (107.32) and 1.1035 Swiss francs (1.1023).
The pound was at 1.9582 dollars (1.9595).
On the London Bullion Market, the price of gold fell to 903.52 dollars an ounce from 917 dollars late on Tuesday.
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