The U.S. dollar continued its march Tuesday, with a near two-month high against the euro and six-month high against the yen two days before the European Central Bank meets to discuss interest rates.
The euro bought US$1.2811 in early European trading, down from US$1.2897 in New York late Monday. The pound fell to US$1.8735 from US$1.8755 on Monday.
The dollar rose to 108.75 yen, above the 108.26 yen it bought in New York late Monday.
The last time the U.S. currency was that high against the euro was Feb. 10, and Oct. 20 against the yen.
The European Central Bank, which sets monetary policy for the 12 euro countries, holds a council meeting Thursday in Frankfurt. No change in interest rates is expected, but the bank's comments will be closely watched.
The Bank of England meets the same day to decide whether it should adjust its interest rate.
After languishing last year, the dollar has been boosted lately by the expectations of higher U.S. rates, which tend to make securities denominated in dollars relatively more attractive.
The market is expecting the U.S. Federal Reserve to keep raising interest rates this year, helping nudge the dollar higher, despite nagging worries about the U.S. trade and budget deficits that have weighed on the dollar.