The dollar was steady on Wednesday as investors adjusted their interest rate outlooks for the United States and the euro zone after conflicting economic data and monetary authorities toned down threats of tighter policy.Competing central bank rhetoric was likely to make trading conditions more volatile in the days ahead, analysts said.
The dollar rose to near a four-month high against the yen on bets the Federal Reserve will increase borrowing costs later this year while the Bank of Japan holds its target at the lowest level among major economies.
Japan's currency weakened as the Bank of Japan's policy meeting minutes from May indicated ``considerable downside risks.'' U.K. pound stayed lower against the dollar and euro after minutes from the Bank of England's June meeting showed policy makers voted 8-1 to keep its benchmark interest rate unchanged. Policy maker David Blanchflower voted for a quarter-point cut, arguing evidence of slowing growth ``more than outweighed'' the news about short-term inflation.


EUR/USD: торговался в диапазоне $1.5460/1.5540.
GBP/USD: fell to $1.9476 before to rebound till $1.9600/10.
USD/JPY: tested offers near Y108.40, recoiling in a result to Y107.80.

UK data at 0830GMT sees the May retail sales data, which is expected to show a 0.2% increase on the month and a rise of 4.2% on the year. Central bank meetings are taking place at the Swiss National Bank, which announces its interest rate decision at 1200GMT (publishing the quarterly monetary policy assessment at the same time) and the ECB. US data also starts at 1230GMT, when initial claims are expected to fall 9,000 to 375,000 in the June 14 employment survey week.
US data continues at 1400GMT, with the Philly Fed Business OutlookSurvey for June and leading indicators. The Philadelphia Fed index is expected to rise to a reading of -11.4 in June, yet another month indicating outright contraction. The leading indicators index is expected to hold steady in May on the positive impact of a steeper yield curve and rising stock prices.

closing
Nikkei 225 +104.45 +0.7% 14,452.82
Topix +7.66 +0.6 1,409.64
FTSE 100 -105.00 -1.79% 5,756.90
CAC 40 -67.58 -1.44% 4,618.75
Xetra Dax -67.25 -0.99% 6,728.91
DOW -130.02 -1.07% 12,030.28
NASDAQ -28.02 -1.14% 2,429.71
S&P 500 -13.00 -0.96% 1,337.93
10yr Note -0.7100 -0.168% 4.154%
NYMEX Crude Oil +2.67 +1.99% 136.68
Gold +6.60 +0.74% 893.50

Japanese stock indexes were higher as real-estate stocks advanced after the nation's biggest privately held developer said rising rents will boost profit this year.
Mitsubishi Estate surged 2.8%, the highest since June 4, while Sumitomo Realty & Development Co. added 1.6%. Token leapt 12%, the most since Aug. 13.
NEC Electronics soared 16%, the highest since Dec. 10. The stock was the second-biggest winner on the MSCI World Index. Goldman raised its rating on the shares to ``buy'' from ``neutral,'' saying demand for mobile-phone chips will increase the company's earnings. NEC Corp., the parent of the chipmaker, climbed 3.8%, the highest since July 25. The company, which was delisted from the Nasdaq Stock Market in October after failing to submit its annual report, settled the dispute with the U.S. Securities and Exchange Commission and won't pay a fine, NEC said today in a filing to the bourse.
Automakers rebounded in the afternoon session as the yen depreciated against the dollar. Mazda Motor Corp., which exports 80 percent of domestic production, advanced 2.9%, while Aisin Seiki Co., partly owned by Toyota Motor Corp., jumped 3.2%. Denso Corp., another affiliate of Toyota, added 2.8%.
Nipponkoa Insurance Co. tumbled 4.4%, the most since May 7, while Mitsui Sumitomo Insurance Group Holdings Inc. lost 3.5%. Millea Holdings Inc., Japan's biggest insurance company by value, slumped 1.8%. Insurers were the biggest losers among 33 industry groups on the Topix.

European stocks fell on speculation bank writedowns haven't reached the halfway point and the slowing economy will erode earnings for retailers and property companies.
Sainsbury lost 3.1%. The third-largest U.K. supermarket chain said sales growth slowed in the first quarter as higher living expenses in Britain cut into consumer spending on food and clothes.
Segro, Britain's largest owner of business parks, lost 4.5%. Land Securities Group Plc, the U.K.'s largest real-estate investment trust, declined 2.7%. Redrow dropped 18%, and Bellway Plc, a U.K. homebuilder aimed at first-time buyers, slipped 10%.Carnival fell 3%. Enterprise Inns Plc slipped 5.2%.
UBS, Europe's biggest bank by assets, fell 4%. JPMorgan said the bank will post another 5 billion francs ($4.8 billion) in writedowns in 2008 and widened its estimate for the Swiss company's loss this year to 4.55 francs a share, from 3.33 francs.
Airlines declined after Morgan Stanley analysts cut price estimates, saying rising fuel prices will hurt earnings. Air France-KLM Group, Europe's biggest airline, lost 2.3%. British Airways Plc, the third largest, fell 5.2%. Air Berlin Plc sank 8.5%.

Wall Street indexes fell Wednesday with the Dow falling below 12,000 for the first time in 3 months - as oil surged in afternoon trading ahead of a key options expiration day.
On the earnings front, FedEx issued fiscal year 2009 earnings guidance well below expectations, citing sluggish demand and record energy prices. The Tennessee-based company's earnings missed analyst expectations for its latest quarter.
Morgan Stanley reported 61% year-over-year drop in second quarter earnings per share, but that was good enough to top expectations. However, shares are under pressure after revenue fell well short of estimates.
One day after Goldman Sachs said U.S. banks may need to raise as much as $65 billion in more capital, regional bank Fifth Third Bancorp announced plans to shore up its balance sheet. Specifically, the Ohio-based bank is going to raise $1 billion in fresh capital, sell $1 billion in assets and cut its quarterly dividend by 66% to $0.15 per share.
Shares of pharmaceutical giant Pfizer were up after the company reached a settlement with Ranbaxy Laboratories over the sale of generic versions of the cholesterol drug Lipitor. Under the agreement, Pfizer will not face generic competition until November 2011 -- an extra 20 months. The agreement will have a significant impact on Pfizer's earnings, considering in 2007 Lipitor -- the world's best selling drug -- accounted for $12.6 billion of Pfizer's $48.4 billion in revenue.