Dollar bounce short-lived as euro nears 3-yr high

London

The dollar index, which measures the currency against a basket of six major rivals, had slipped to its lowest since Sep 20 on Tuesday, as optimism about the eurozone economy drove the single currency above US$1.20 for the first time in 3½ months.

The dollar was given some reprieve on Wednesday, bouncing after strong manufacturing and construction data. It gained further support from the Fed's latest minutes, which indicated the central bank is still poised to raise interest rates several times this year.