The dollar fell versus a basket of currencies on Wednesday as upbeat data from China and Australia revived shaky equity markets and gave a boost to risk sentiment. Australia's economy grew at the fastest pace in three years in the second quarter as households spent far more than expected while exports enjoyed an Asian-driven boom, reviving the risk of a further rise in interest rates and leading to a surge in the Aussie dollar
At 1115 GMT, the Australian dollar was trading at $0.9055, up 1.6 percent on the day and its highest in two weeks. European stocks were up 1.2 percent, with US stock futures pointing to a positive open. The Aussie's rise contributed to a 0.8 percent fall in the dollar versus a currency basket to 82.60, down from a 6-week high hit last week at 83.559.
The euro rose roughly 1 percent to $1.2810. Traders said Asian demand had triggered stop-losses at $1.2710, while a large option expiry at $1.2800 was also highlighted, potentially having a magnetic impact on the currency. The euro rose 0.8 percent to 1.2976 francs, recovering from a lifetime low versus the euro hit on Tuesday at 1.2850 francs on trading platform EBS. The Swiss franc eased across the board after a broad rally the previous day.
Still, it rose to 1.0125 francs per dollar, its highest since December 2009, as the US currency suffered against most major currencies. The dollar slipped 0.2 percent to 84.00 yen, while the euro was up 0.6 percent at 107.45 yen. The dollar pulled back from the day's high of 84.58 yen and remains within shouting distance of a 15-year low of 83.58 hit on EBS last week.
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