The dollar rose to the highest level in five weeks versus the euro after the Federal Reserve signaled it may pause cutting interest rates.
The US currency climbed after the Fed said yesterday that the seven rate reductions since September were substantial".
The dollar posted the first monthly advance against the euro this year in April as the European currency's yield advantage over the greenback has eroded.
The spread between two-year German notes and equivalent US Treasuries has narrowed to 1.47 percentage points from a record high of 1.85 points at the end of March.
The dollar rose to $1.5524 by 10:19 a.m. in London, from $1.5622 yesterday in New York. It touched $1.6019 per euro on April 22nd, the lowest level since the 15-nation currency's launch in 1999.
The dollar was little changed against the yen at 103.95. The euro fell to 161.40 yen from 162.36.
Bloomberg