In the currency market, the dollar was off slightly against the euro. Late Wednesday, the euro was trading at $1.2872 vs. $1.2856 on Tuesday.

Sterling continued to take a pounding, so to speak, falling nearly to $1.36 before edging back over $1.37.

With the UK’s financial system in shambles, Bank of England Gov. Mervyn King said that the central bank is considering buying up a range of assets in the coming weeks, in an attempt to re-start stalled lending to businesses and households.

King also promised “quantitative easing” measures that could be used to boost the money supply (i.e., roll the printing presses), considering the economic contraction that threatens to push inflation below the central bank’s 2% target.

Back home, Timothy Geithner, Barack Obama’s embattled Treasury secretary-designate, told the Senate Finance Committee that the president is working on a comprehensive bank-rescue package that will be unveiled in the next few weeks.

Geithner refused to talk numbers, but Obama advisor Paul Volcker, the former Federal Reserve Board chairman, told the same panel that the cost of fixing the banks would run to several trillion dollars, and no one contradicted that estimate.

Source: Dollar Little Changed Against Euro

Last 5 posts by Doug Casey

• Resource Stock Roundup:Monday, July 27, 2009 - July 27th, 2009
• Base Metals Higher - July 27th, 2009
• Crude Continues to Climb - July 27th, 2009
• Dollar Moves Lower - July 27th, 2009
• Gold Pushes Through $950 - July 27th, 2009