Dollar's post-Fed rally fizzles as investors focus on US growth

London

THE dollar retreated from the strongest level in more than two months versus the euro as investors looked beyond the growing probability of a Federal Reserve interest-rate increase this year to focus on US growth and jobs data due on Thursday.

The US currency's rally was capped before reports that economists predict will show a slowdown in growth in the third quarter and a pick-up in claims for jobless benefits.

The greenback weakened for the first time in three days versus the euro as a report showed economic confidence in the currency bloc unexpectedly rose this month. The dollar advanced on Wednesday versus most of its major peers as …