The dollar fell to a three-year low against its peers on Wednesday, losing its earlier bounce as the euro edged back after shaking off a setback to Chancellor Angela Merkel's chances of forging a "grand coalition" in Germany.
The dollar index against a basket of
six major currencies last stood little changed at 90.446 after hitting
90.113, its lowest since December 2014.
The dollar index
momentarily recovered to as high as 90.826 on Tuesday after slipping
steadily this month on investors' expectations that major central banks
would eventually windback stimulus to normalize monetary policy.
view held by many market participants is that monetary policies are
headed for normalization across the globe. The dollar is bound to stay
weak when such views prevail," said Yukio Ishizuki, senior currency
strategist at Daiwa Securities in Tokyo.
The euro was 0.05 percent
higher at $1.2266, brushing off weakness seen overnight and going as
high as $1.2323 earlier, its strongest since December 2014.
common currency had slid to $1.2195 on Tuesday after news which
suggested the ECB might not tweak its policy message very soon curtailed
the currency's rally.
The euro had also been held back on Tuesday
as members of the center-left Social Democrats (SPD) in one of
Germany's regions voted against talks with Merkel's conservative
Christian Democrats (CDU), stoking worries over whether she can form a
The dollar was 0.2 percent higher at 110.675
yen, inching back towards a high of 110.985 marked on Tuesday. It
stooped to a four-month low of 110.245 on Monday amid speculation that
the BOJ could eventually begin looking for a way out of its super
The pound went as high as $1.3836, its strongest since June 2016.
It last stood little changed on the day at $1.3792.
Canadian dollar was a shade weaker at C$1.2442 per dollar with
immediate focus on the Bank of Canada's monetary policy decision due
later in the day.
The BoC is widely expected to raise interest
rates by 25 basis points and take the benchmark borrowing cost to 1.25
percent. Analyst expect the BoC to raise rates as many as three times in
The Australian dollar rose 0.1 percent to $0.7970 and the New Zealand dollar dipped 0.1 percent to $0.7260.
was 7.2 percent lower at $10,570.00 on the Bitstamp exchange. It had
lost 16 percent on Tuesday, during which it fell to a 1-1/2 month low of
$10,162.00 after reports suggested it was still possible that South
Korea could ban trading in bitcoin.