Forex- Weak Euro Bolsters U.S. Dollar

© Reuters. The dollar inched forward on Wednesday.

Investing.com – The dollar rose against a basket of currencies on Wednesday as the euro fell from a three year high.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, up 0.19% to 90.40 as of 11:35 AM ET (16:35 GMT) after plumbing a three year low of 89.98 overnight. It was bolstered by a lower euro.

was down 0.21% to 1.2235 after rising as high as 1.2323 overnight, which was the strongest level since December 2014.

The euro rose amid expectations that the European Central Bank will start to unwind its massive monetary stimulus program this year.

The euro declined after policymaker Ewald Nowotny that the euro’s recent strength against the U.S. dollar is “not helpful,” reflecting unease among officials over the currency’s strong gains.

The dollar has been pressured lower by the view that the global economic recovery will outpace U.S. growth and prompt other major central banks, including the ECB to begin unwinding loose monetary policy at a faster pace.

Against the yen the dollar was higher, with rising 0.32% to 110.81, pulling away from the four-month low of 110.18 reached overnight.

Elsewhere, sterling gained 0.25%, with at 1.3828. The Australian and New Zealand dollars were also up against the greenback, with up 0.23% to 0.7978 and increasing 0.26% to 0.7287.

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