WORLD FOREX: Dollar Generally Higher, But Pound Rallies

NEW YORK (Dow Jones)--The dollar is generally higher Tuesday morning as U.S. stock futures suggested a sluggish equity market, enabling the U.S. dollar to gain back some ground lost in its sharp retreat last week.
One exception to the general strengthen in the dollar was the British pound, which rallied sharply after unexpectedly strong inflation data in the U.K.
But the general theme in currency markets was the U.S. dollar's recovery from some of the losses it sustained after last Wednesday when the U.S. Federal Reserve announced it was expanding its quantitative easing program.
"I think this is the ongoing fading of the negative impact of the QE announcement last week, which saw a very sharp knee-jerk dollar selloff," said Adam Cole, chief currency strategist at RBC Capital Markets in London.
In morning trading Tuesday the pound is at $1.4693 from $1.4585 late Monday after reaching a high at $1.4781, according to EBS. The euro fell to $1.3530 from $1.3645 but rose to Y132.91 from Y132.26. At one stage it hit a new five-month high at Y134.50.
The dollar had pushed ahead to Y98.23 from Y96.91 late Monday in New York, according to EBS. The dollar is up at CHF1.1289 from CHF1.1239.