The U.S. dollar was narrowly mixed Wednesday in a thin, jumpy market.

After edging slightly higher during the morning, the dollar pushed up suddenly on broad short-covering, largely from Europe, and on a report of a bomb blast in Kuwait that wrecked a Saudi Airlines office.But the dollar fell back a bit on a statement by Federal Reserve Board Governor Robert Heller that inflation threats make it difficult for the Fed to carry out its policy of seeking both low inflation and continued economic growth.

Dealers said the market shrugged off the Commerce Department report that U.S. personal income rose 0.8 percent and personal spending rose 0.7 percent in March.

David Wilson of Giro Zentrale Bank said the market was somewhat surprised by the Fed's late-morning addition of reserves to the money market through six-day repurchase agreements.

He said cross trading was the featured action, with a favored play buying deutsche marks and selling yen. The sense is that the yen is getting costly and it may be time to unwind and take profits.

In London Wednesday, the dollar ended off its highs in thin trading.

Dealers said the dollar fell back on profit-taking and unwinding of long positions after it failed to penetrate resistance at 1.68 deutsche marks and 125.30 yen.

They said there was a slight jump in the deutsche mark against the yen due to news that non-OPEC oil producers proposed a 5 percent cutback in crude oil exports, and rumors that the Bundesbank might be about to tighten its monetary policy, they said.

Dealers noted that sterling has lost much of its recent independent strength, and the market was waiting for a fresh lead from the release Friday of U.K. March trade data, forecast to show a current account deficit of around 550 million ($1.0 billion).