The dollar has risen 0.4% against the recession-laden yen but has otherwise lost 0.5% against the Canadian dollar, 0.4% relative to the euro, kiwi and Aussie dollar, and 0.2% against sterling.  The yuan is steady. Investors showed greater interest in reacquiring risk after Strauss-Kahn resigned as Managing Director of the IMF.  The dollar is up [...]

When the Monetary Policy Committee last met on May 4-5, policymakers found the inflation outlook no clearer than before and voted in the same highly fractious pattern as they had at the previous three monthly meetings.  Uncertainty is compounded by two conflicting forces.  Cost-push inflation from raised indirect taxation, elevated commodity prices and previous sterling [...]