The dollar weakened against major currencies and European stocks hit record highs as traders bet on the US central bank looking through signs of rising inflation to keep interest rates close to zero.
The dollar index, which measures the greenback against a basket of trading partners’ currencies, lost 0.3 per cent on Tuesday to trade around its weakest level of 2021 so far. Over the past year, the index has fallen more than 10 per cent.
Sterling pushed 0.3 per cent higher against the dollar to $1.4191, around its strongest level since February. The euro also gained 0.3 per cent to $1.2259, its best level since January.
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