Dollar extends rise as global stock rally ends

The dollar extended gains against its peers on Thursday as a stock market rout raised worries about excessive valuations boosted by a safe-haven bid for the dollar.

The dollar rose to 104.27 against the yen following a 0.4% gain on Wednesday. Against the euro, the greenback traded at $1.2094, nearing a one-week high. 

The pound dropped for a second straight day to $1.3673. The euro nursed losses after a European Central Bank member said that interest rate cuts may curb the currency’s recent gains.

The dollar index was at 90.742, clinging to a 0.6% rise on Wednesday. The Aussie dropped to $0.7634, while the kiwi fell to $0.7135.

The U.S. Federal Reserve maintained dovish monetary policy on Wednesday but signaled concern about the slow economic recovery.

In onshore trade, the yuan briefly fell to a one-week low of 6.4946 against the dollar.