NEW YORK: The dollar slid from a four-week high on Wednesday, led by losses against the euro after a news report said European Central Bank officials have become more confident in their outlook for the region's recovery.
Some analysts, however, expect the dollar to hold recent gains after a steep fall the last few months
Citing euro area officials, Bloomberg News reported that the ECB's upcoming projections for output and inflation will show only slight changes to the June outlook, with gross domestic product for this year to be revised higher and private consumption doing much better than expected.
The report comes ahead of Thursday's ECB monetary policy meeting.
In mid-morning trading, the euro rose 0.4% against the dollar to $1.1820, which pushed the dollar index down 0.3% at 93.214. Earlier in the session, the index advanced to a four-week peak.
The dollar also fell against the Swiss franc, declining 0.4% to 0.9141 franc.
Against the yen, however, the dollar rose 0.2% to 106.19 yen.
Earlier, the safe-haven yen had gained after news of a delay in the roll-out of a vaccine for COVID.
Sterling, meanwhile, rose back above $1.30 on Wednesday after an EU statement that said it would not suspend Brexit negotiations over the British government's new internal market bill. The pound was last up 0.1% at $1.2990.
The Canadian dollar recovered against the US dollar, which fell 0.5% to C$1.3162.
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