Reply #12: Gee, that darned ol' dollar rose again.

[swag]

Rose against the Yen, and to a seven week high against the Euro. I'm sure not a dollar bull, but these and other recent medium term currency moves belie the claims made in August that the dollar would plunge if the Fed paused. Three-month T-bill rates are not the only determining factors in dollar valuation.

Another reason for the dollar's pesistent strength in the face of most expecting its continued fall is the Japanese appetite for US 10-Year Treasury Notes, over whose effective interest rate the FOMC has had little influence in recent times.

And as for those short rates, there's no way the Fed will raise on Wedneseday.