Search for safe haven takes a pause as stocks recover

London

THE dollar rose on Wednesday as some calm returned to currency markets with Wall Street stock futures pointing to a firm start and European shares recouping some of their losses, all of which lessened the need to buy safe-haven currencies like the yen.

China's central bank ramped up its efforts to shore up sentiment, pumping US$21.8 billion into the money market, a day after it cut interest rates and relaxed reserve requirements for some large banks. Still, many investors were cautious with the recent sell off contributing to a sharp rise in volatility. Besides, it was still unclear whether the US Federal Reserve would opt for tightening monetary policy or not.