41.   The dollar had rallied Monday following the weekend collapse of a regional Japanese bank.

42.   The dollar has been rallying on a combination of stronger U.S. interest rates and economic sluggishness in Japan and Germany.

43.   The dollar rallied Friday in light pre-holiday dealings, with traders encouraged that a U.S. budget deal could soon be struck.

44.   At James Capel economist Ian Morris explained that the dollar had then rallied because US interest rates were higher than Japanese rates.

45.   But later in the morning, the dollar rallied somewhat on covering purchases provoked by rumors of central bank intervention.

46.   But at Hambros Bank, analyst Matt Nicholls said that the dollar would not rally firmly until an agreement had been reached to reduce the US budget deficit.

47.   But they said the dollar could rally into the New Year if a breakthrough occurs in the budget talks.

48.   But the dollar might well rally next week because the Japanese and German monetary authorities wanted the dollar to be stronger, she said.

49.   The bond market was firm initially but then fell when the dollar rallied in response to a reduction of the US trade deficit.

50.   The dollar rallied here early on Monday morning as dealers awaited the opening of trading on financial markets on Wall Street.