On Thursday the dollar surged to a three-month high Vs a currency basket, buoyed by an upbeat tone from the Federal Reserve, while on fresh concerns about Greece’s waning fiscal health the euro tumbled.

Euro against Major currencies

In thin pre-holiday liquidity, the euro reversed to its lowest against the dollar since early September. It picked up pace at $1.4500 after breaking strong support and hitting stop-loss sell orders to take it below the $1.4400 mark.

On trading platform EBS, the euro fell more than 1 percent to $1.4369. This is its lowest since early September. It was trading at $1.4388 EUR=, by 0858 GMT, which is down 1%.

The single currency has dropped down 1% Vs yen EURJPY=R and it has hit a one-month low versus sterling EURGBP=D4.

The euro has suffered loss due to the fiscal health worries in some countries, over European banks and anticipation that that the U.S. economy might be  recovering at a faster pace compared to the euro zone.

S&P on Wednesday put about 1.46 trillion euro worth of covered bonds on credit watch negative or developing and this also harmed the sentiments towards Euro.

Dollar Index

The dollar index .DXY, rose as far as 77.609, its highest since early September. This has given investors more confidence that the U.S. currency has came out of a downtrend that began in March.

Australian Dollar

The higher yielding Australian dollar stood at $0.8908 AUD=D4 by 0858 GMT, down 1.1 percent.

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