The US dollar ended the day on a stronger note as an end-of-day selloff in the US stock markets triggered yet another round of flight-to-safety.

The US dollar ended the day up against the British pound and commodity dollar, while edging back versus the euro, Swiss franc, and Japanese yen. The most disappointing reaction, though, was in the stock markets as the DJIA ended the day down 189 point while an apparent lack of confidence in government debt led Treasuries to sell off as well.

Fed Chairman Ben Bernanke opened the door to rate cuts during a speech on Tuesday, while a record decline in consumer credit suggests spending may fall signficantly through the end of the year.

Will the FOMC minutes trigger a sell-off?

Looking ahead to next week, there will be limited event risk on hand for the US dollar, leaving risk trends all the more likely to drive the markets.

The US dollar started the day on a strong note amidst hopes that financial market stability was on its way.

While the fundamental aspects of the US economy remain grim, as US factory orders plunged 4 percent, the US dollar has still managed to rally.

The US dollar started the morning out on a strong note, but subsequently pulled back on indications of a worsening contraction in the US manufacturing sector.

The US dollar rebounded across the majors as the financial markets speculated that the Treasury’s bailout bill would be approved by the US House of Representatives eventually, despite its failure on Monday.

The US dollar rocketed higher during the European trading session as European governments had to step in to rescue Belgium’s Fortis, the UK’s Bradford & Bingley, and Germany’s Hypo Real Estate Holding.  However, nearly every factor worked against the US dollar during the New York trading session.