EUR/USD Drops to 1.11 on Bond Buying

The dollar hit a three-week high against the euro and a two-month peak versus the yen on Wednesday, extending a rebound rally supported by European Central Bank plans to front-load its bond buying program in a move to keep interest rates low.

Minutes released from April’s U.S. Federal Reserve monetary policy meeting indicate expectations that the U.S. economy’s strength should pick after a slack first quarter, supporting a view that interest rates will rise sooner rather than later.

One strategist says even more important than the minutes are recent regional Fed studies indicating that the disappointing growth in the first quarter was an anomaly.