Momentum builds behind dollar as eyes move to jobs data

London

THE dollar inched towards 21/2 month highs against a basket of currencies on Wednesday, buoyed by returning expectations of a rise in US rates and better growth globally, which has prodded yields on US government bonds higher this week.

The euro, a sufferer since the European Central Bank sent a strong message last month on the prospect of more cuts in interest rates and other monetary easing, slid another third of a per cent after a speech by ECB chief Mario Draghi.

The Federal Reserve's delay in raising interest rates in September had many investors and analysts predicting it would hold fire long into next year. But a bundle of more hawkish signals two weeks ago has …