Dollar surges on higher oil prices, improved China data

London

THE dollar surged to a two-week high against the euro on Wednesday, as a push of oil prices above US$40 a barrel and improved data out of China drew investors into riskier bets than low-yielding assets in Europe and Japan.

The euro and yen have gained strongly against the dollar in recent weeks as investors sought traditional safe havens for their money on a darkening outlook for banks and economic growth, underlined again by downgraded IMF forecasts on Tuesday.