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(From CBS Marketwatch (Stories))
Byline: ALAN CLENDENNING
CHICAGO (CBS.MW) - The dollar rallied Wednesday as stronger-than-expected U.S. factory data all but sealed a Federal Reserve interest-rate increase next week and boosted the odds for future hikes.
"The catalyst to today's sharp dollar rally is the little observed New York Fed manufacturing index, [which posted] the highest percentage gain since February 2002," said Ashraif Laidi, chief currency analyst with MG Financial Group.
In late-day U.S. trading the dollar was up 0.7 percent against Europe's shared currency, when compared to its value in late U.S. trading on Tuesday. The euro was quoted at $1.2155.
The greenback rose 0.4 percent against the Japanese yen at 110.05 yen.
The Federal Reserve meets next Tuesday and is widely expected to nudge its…