Anyone filling their tank on Tuesday may have noticed the lower gas prices. The steep drop in oil prices, bringing the cost of gasoline under $4.00 per gallon in some places, helped the dollar rally a bit more on the international trading market. Comments by U.S. Treasury Secretary Henry Paulson also helped. Paulson reiterated that a strong dollar was in the best interest of all Americans and nations that supported it.
Wachovia, a major financial institution in the United States, reported weak results earlier in the week and the comments by Paulson and Charles Plosser, the Philadelphia Federal Reserve President, seemed to overshadow the negative results Wachovia reported. The comments and the oil drop seemed to help the dollar gain more support. Plosser commented that the rising inflation could force the Fed to raise interest rates. His comments were meant to help the economy bounce back and stabilize so that such drastic measures would not have to be taken.
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