For the first time since its financial crisis, Europe is carrying out stress tests that could force change at banks with strong political connections.» Read More
U.S. crude oil prices jumped by more than 1 percent after a government report showed a sharp drop in inventories in the United States.
Commerzbank posted a rise in profit in the first quarter as significantly improved earnings in retail banking and its Eastern European operations compensated for weaker investment banking income.
U.S. crude rose as expectations of a build in inventories were undermined by record low stocks at the benchmark's Cushing delivery point.
Selling accelerated after gold broke through its 200-day moving average of $1,300, a key level where many traders placed their stop-loss orders.
The dollar fell to a 10-day low against the yen after the Bank of Japan refrained from additional monetary easing.
The yen reached a fresh six-year low on the New Zealand dollar on Monday, as safe-haven demand waned amid hopes of more stimulus from China.
A surprise fall in Spanish inflation bolstered investors' bets the European Central Bank will ease policy next week to ward off the threat of deflation.
The euro fell against the dollar and pared its gains against the yen on Monday.
The ECB's forward guidance may adjust policy to tighten the slack in the Euro zone economy, a senior ECB official said.
The euro added half a cent after the European Central Bank left interest rates unchanged.
Gold prices fell 1 percent on Tuesday, retreating from the previous day's four-month high.
Putin's war games in Ukraine and a government report showing new housing sales at five-year highs both boosted the greenback on Wednesday.
A still fragile outlook for the European economy and strong US economic growth helped push the greenback up.
Gold may extend gains to fresh three-month highs this week, on mixed U.S. data, though some warn the rally may be capped around $1,350.
The dollar slipped to a six-week low on Monday as soft U.S. economic data stood in contrast to better figures out of the euro zone and China.
The CEO and Chairman of Commerzbank has told CNBC its fourth-quarter earnings were "solid," but warned investors not to expect a dividend in 2014.
Recent announcements from the Fed have not pushed the dollar up as much as hoped, while the Aussie and the Swedish crown dived as well.
The European Commission has outlined plans to crack down on banks' risky trading activities in an effort to put an end to lenders deemed "too big to fail."
Rising U.S. oil production will help neutralize supply disruptions from Libya and Iraq, making global markets less vulnerable to price shocks.
European equities closed sharply lower on Tuesday after disappointing data from the euro zone and increased concerns about tapering.