Dollar rebounds but investors focus on consolidating positions

London

THE dollar bounced on Wednesday, snapping a three-week losing streak as investors consolidated positions ahead of manufacturing data and minutes of a December US Federal Reserve meeting.

But despite the dollar's rebound, market strategists remain downbeat about the prospects of the greenback in the near term on concerns that future US rate hikes were broadly priced into the markets. Evidence of easy financial conditions were evident with real interest rates in the US holding near their lowest in nearly five years, according to Thomson Reuters data.