By William L. Watts, MarketWatch LONDON (MarketWatch) - The U.S. dollar consolidated against major rivals Wednesday, although the British pound extended gains to hit a two-month high versus the greenback as data showed the U.K. labor market improving further. The dollar index (DXY 83.52, -0.13, -0.15%) , which tracks the U.S. unit against a basket of six major currencies, traded at 83.576, up from 83.564 in late North American trading on Tuesday. Read more Market Watch Currencies coverage. The euro (CUR_EURUSD 1.2713, -0.0008, -0.0629%) advanced versus the dollar to buy $1.2704, up a shade from $1.2693 Tuesday after struggling to hold above the $1.2700 level. A weaker-than-expected 0.9% monthly rise in May euro-zone industrial production helped cap the single currency's gains, Schlossberg said. Economists had forecast a 1.3% monthly gain. The scale of the increase leaves production on track for a strong quarterly gain of around 2.5%, economists said, which should allow gross domestic product data to show that growth picked up speed in the second quarter. Read about euro-zone industrial output. The dollar rallied versus the yen as Asian equities advanced, then later trimmed its gain.The dollar traded at ¥88.62, down from ¥88.85 late Tuesday. "The dollar and yen maintained an easier tone as the market remained in risk-seeking territory following strong equity market gains," said currency analysts at Action Economics.

Source