Dollar reaches three-month high as Fed's economic remark

THE dollar touched a three-month high against the currencies of major United States (U.S.) trading partners as the Federal Reserve said the economy improved while reiterating it will keep borrowing costs low for an "extended period."

The euro dropped against the pound as Greece's credit rating was cut by Standard & Poor's and the European Central Bank raised its estimate for writedowns in nations using the single currency by 13 per cent. The dollar posted its biggest weekly rally since June before an economic report next week forecast to show an advance in U.S. durable goods.