The dollar registered strong gains against the euro and yen as disappointing earnings from Bank of America Corp and Apple hurt US equities.
Otherwise the latest Beige Book from the Federal Reserve provided no surprises. It said the US economy grew at a ‘moderate’ pace in March and early April, an improvement from the ‘modest to moderate’ rate seen the month before.
However recent US economic data has been largely disappointing and some believe the Fed may now not be as keen to tighten policy.
The dollar index, which measures the US unit against a basket of six others, rose to 73.78 from 73.66 on Tuesday.
The euro endured a significant sell-off ahead of an expected interest-rate cut from the European Central Bank on Thursday. The single currency was down 1.1% at $1.3032.
Elsewhere sterling was weighed down by fresh data showing higher unemployment in Britain and weak wage growth. Jitters about UK growth sent the UK currency 0.8% lower at $1.5238.
Against the yen, the greenback traded at ¥98.11 from ¥97.57 on Tuesday after the fairly upbeat Beige Book.
Last week the dollar looked like it may rise above the psychologically important ¥100 level after the Bank of Japan announced its aggressive stimulus plan.
