Dollar Briefly Reverses Losses vs. Euro

Wednesday, 19 Mar 2008 | 12:51 PM ET

The dollar briefly reversed losses against the euro on Wednesday in volatile trading, drawing support from losses in gold futures.

The euro was now recovering from a dip to $1.5604 as gold declined.

Gold futures, on the other hand, fell as much as 6 percent to trade just above $940 per ounce, hurt by heavy liquidation of funds.

"There has been a large unwinding of commodities in gold especially as some market participants favour the Fed's action to date," said a London trader.

"Hedge funds have been unwinding good profit-making positions, including long euros," he added.

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