Gold prices tumbled in the face of the firmer dollar.

"The firmer dollar brought it down a little more, but that was about it," he said.

Higher interest rates and a firmer dollar would also make Treasury securities more attractive to foreign investors.

With no economic data to give them direction, bonds received some support from a firmer dollar.

Government securities traded higher yesterday, aided by weak economic data and a firm dollar.

A firm dollar on foreign exchange markets also helped.

Traders said market sentiment had also been improved by a somewhat firmer dollar.

He also said a firm dollar would not be "an impediment to further progress" in cutting the trade deficit.

Analysts said the market continued to benefit from a firmer dollar and declining interest rates.

Meanwhile, the firmer dollar encourages foreign investors to buy stocks.