The U.S. dollar was narrowly mixed Wednesday, as the market continued its consolidation phase with no important economic news due until Friday's reports on producer prices and retail sales for September.
The dollar failed an initial upside push in early trading Wednesday, with broad-based selling interest above 1.5310 Deutsche marks pushing the dollar back below DM1.5300, traders said. The dollar later regained that level.With no fundamental news to focus on, the markets were swept by a series of rumors, all of which were denied.
The White House said it had no indication Russian President Boris Yeltsin had died.
While traders mostly discounted the Yeltsin rumor, market players were abuzz about news reports that the mother- and father-in-law of one of Yeltsin's doctors had been murdered Monday.
The dollar rose against the Swiss franc after Swiss National Bank directorate member Bruno Gehrig said the franc was still overvalued and that the impact of the recent rate cut had not yet been reflected in the exchange rate.
Traders in both London and Paris speculated the Bank of France was buying both dollars and Deutsche marks for francs, although this could not be confirmed.
The dollar relinquished some of its gains against the yen after the Japanese Ministry of Finance's Eisuke Sakakibara killed overnight rumors that he had cited 120 yen to the dollar as an acceptable level.
The British pound lunged higher against both the dollar and Deutsche mark after the minutes of the Sept. 4 monthly monetary meeting showed Bank of England Governor Eddie George pressing for a hike in interest rates. Mr. George called for ''a marginally tighter policy.''
British Prime Minister John Major's office dismissed financial market rumors Wednesday that the government had decided to hold the next election Nov. 7.
Mr. Major must call an election by next May.