NEW YORK: The dollar rebounded from a three-month low against a basket of currencies on Wednesday as a risk-on rally in global financial markets appeared to stall after US data showed a less-than-rosy economic picture.

The number of Americans filing first-time claims for jobless benefits increased further last week, suggesting that an explosion in new Covid-19 infections and business restrictions were boosting layoffs and undermining the labour market recovery.

The US dollar index was 0.05% lower at 92.086, having fallen as low as 91.941 earlier in the session, its weakest since Sept 1. Against the yen, the dollar was 0.07% lower.

Bitcoin, the most popular cryptocurrency, climbed to $19,271, just short of its record of $19,666 from December 2017.