The dollar was up against the euro for the second consecutive day in trading in Asia on Wednesday (October 21st), while the pound also climbed after a statement from the Bank of England.Speaking to Bloomberg, Toshiya Yamauchi, a manager of the foreign-exchange margin-trading department at Ueda Harlow in Tokyo, explained that the dollar's rise was closely linked to wider movements in the stock market.The dollar touched a 14-month low against the euro last week after a clutch of strong earnings reports from the US helped to spur a rally on Wall Street. However, in early trading today, that optimism continued to wane."We need to watch for a possible reversal of risk trades or short positions on the dollar," commented Mr Yamauchi.The pound's rise came after statements from the Bank of England's governor Mervyn King warning that consumers and businesses will need to accept higher borrowing costs in the future.