Dollar Rallies at Last

The dollar rose to a three-week high against the euro today and looked set to post its biggest weekly advance since March. The dollar advanced to $1.55 per euro this morning in London, after falling below the $1.60 barrier on Tuesday. The dollar also gained against the yen, and investors are betting on another strong showing next week, reports Bloomberg.

"The Fed may be done cutting rates after next week, and that's put a floor under the dollar," said one currency trader. The dollar's renewed health comes as the economic momentum of the eurozone is starting to wane. A report by the ECB indicated that future inflation could be worse than predicted. The euro fell not only against the dollar, but against the yen and the pound as well. (More US dollar stories.)