Dollar Briefly Reverses Losses vs. Euro

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.