FOREX-Dollar rises ahead of Fed, euro hit by bank woes

The dollar rallied on Tuesday, hitting a 10-week high against the euro on concerns about euro zone banks, and soared against the yen as strong inflation data suggested the Federal Reserve may wind down emergency economic support programs more quickly than expected.

Such a move by the Fed, which concludes a two-day policy meeting on Wednesday, would likely be seen as a prelude to higher interest rates in 2010, rendering the dollar more attractive by raising the return on dollar-denominated assets. >>