U.S. Dollar Strong as Others Wane

The U.S. dollar hovered at a two-month high against a basket of major currencies early in Asia on Thursday, having benefited from a shake out of long positions in sterling and further weakness in the euro.

Traders said month-end buying had also supported the greenback, helping drive the dollar index as far as 80.581. A break above 80.599, the April 4 peak, will take the index back to highs not seen since mid-February.

The euro plumbed a fresh three-month low of $1.3587, and started trade in Asia just above that trough. Sterling suffered its biggest fall in four months to $1.6697, a dramatic reversal from its rally to a near five-year high just shy of $1.7000 earlier this month.


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