2018.01.1801:28:00UTC+00Dollar Climbs on U.S. Data, Euro Takes a Breather

The dollar rose from three-year lows as comments by European Central Bank officials eased the euro's recent rally.

The dollar index against a basket of six major currencies rose 0.4 percent to 90.878 after retreating overnight from a three-year low of 90.279 set earlier in the week.

The euro was flat at $1.2188, dropping from a three-year high above $1.2300 after some ECB officials voiced worries about the currency's strength.

ECB policymaker Ewald Nowotny told reporters the euro's recent strength against the dollar is “not helpful,” which encouraged a bout of profit-taking before a policy meeting next week.

The single currency had gained this month on expectations that the central bank would take steps towards winding back on stimulus measures to normalize monetary policy.

In an interview with an Italian newspaper Vitor Constancio, the ECB vice president, said he did not rule out that monetary policy would still continue to be “very accommodating for a long time”.

The dollar was steady at 111.310 yen after jumping 0.75 percent overnight, when it bounced from a four-month low of 110.190.

The Australian dollar fell marginally to $0.7959 after slipping from a four-month peak of $0.8023 the previous day.