U.S. Dollar Rally Pauses

The dollar nursed modest losses early on Wednesday as investors decided to take some profits on a four-session rally that swept the greenback to multi-year highs against the yen and euro.

The dollar index last traded at 87.027 after shedding 0.3 percent, recoiling from a four-year peak of 87.406 set on Monday. Against the yen, the greenback stood at 113.53, off Monday’s seven-year high of 114.21.

The euro bounced to a high of $1.2577 from a two-year low of $1.2439.  Providing an excuse for some short covering in the euro was a Reuters article that quoted European Central Bank sources as saying colleagues of ECB Chief Mario Draghi were unhappy with his “secretive management style and erratic communication”.


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