The dollar hit a three-week high against the euro and a two-month peak versus the yen on Wednesday, extending a rebound rally underpinned by European Central Bank plans to frontload its quantitative easing program in a move to keep interest rates low. "The ECB has taken the wind out of the euro's sails," said Mark McCormick, currency strategist at Credit Agricole in New York. McCormick added the ECB's plans have helped focus the market on consolidating the euro's recent rally, especially as it approached $1.15 again.
"Today we're seeing more momentum behind that and I think the market is really focused on the FOMC minutes," he said, referring to the US Federal Reserves interest rate setting committee meeting minutes from April. In mid-morning New York trade, the euro bounced off its three week low of $1.10620 to trade off 0.37 percent at $1.11090, on the EBS trading platform. The dollar held near the two-month peak of 121.27 yen, up 0.48 percent. Sterling resisted the charge, gaining 0.3 percent to $1.5555 on the back of some new signs of unease over ultra-low rates and the housing market from the Bank of England.