US dollar rebounds off lows on policy hopes

London

THE dollar climbed on Thursday, moving further away from a two-month low hit earlier this week, as investors added bets that the US central bank will continue to unwind its record policy stimulus plan next year as growth prospects brighten.

Though the greenback is set for its biggest monthly drop since July, some of the world's biggest investors expect inflation to rise in the US, forcing policymakers to raise interest rates more than what markets are currently pricing in and providing a boost to the dollar.