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Modest Strength Remains Visible On Wall Street - U.S. Commentary (RTTNews) - The dollar pared a fraction of its steep recent losses on Monday, despite renewed speculation that the Federal Reserve is once again planning to fire up the printing press in support of the US economy.

Stubborn weakness in the jobs and housing markets have caused the recovery from recession to stall over the past few quarters, and with interest rates already at historic lows, the Fed has few options at its disposal.

Quantitative easing is expected to be announced in November, driving the dollar to its lowest since 1995 versus the yen, record lows against the aussie and Swiss franc, and 8-month lows against the euro and sterling.

Not every policy maker on the Federal Reserve feels QE is the way to go: KC Fed President Thomas Hoenig doesn't 'see the benefits' and says low rates are 'harmful' for 'long-term recovery.'

There was little economic data to from the US on Columbus Day, giving traders time to assess the International Monetary Fund's meeting on currencies over the weekend in Washington.

China is digging in its heels amid requests that it allow its yuan to rise.

The latest call from the U.S. to let the Chinese currency appreciate more freely was rebuffed by Chinese central bank Governor Zhou Xiaochuan, who claimed it was the ultra loose monetary policy of the advanced economies that has forced China to keep a lid on the yuan.

Last week, Premier Wen Jiabao was quoted as saying to top E.U. officials that a big rise in the yuan would spark social turbulence in China, and that unrest in China would be a "disaster for the world."

The dollar improved to $1.3890 versus the euro, from last week's 8-month low of 1.4025. There was little movement against the sterling, with the buck holding at $1.5890.

The dollar hit a 15-year low of Y81.34 against the yen on Sunday, and was little changed near 82 over the course of Monday's session


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