The dollar stood near a two-month peak against a basket of currencies on Wednesday after robust U.S. housing data supported the case for the Federal Reserve to raise interest rates in the near term.
The U.S. currency also gained on the safe-haven yen as investor risk aversion ebbed on the back of a bounce in European and U.S. equities.
The dollar index was up 0.3 percent at 95.618 .DXY, not far from the two-month high of 95.660 climbed overnight after data showed new U.S. single-family home sales surged to a more than eight-year peak in April and prices hit a record high.
The euro was steady at $1.1139 EUR=, within reach of $1.1133, its lowest level since March 18 plumbed on Tuesday when it sank 0.7 percent.
The dollar was up 0.1 percent at 110.090 yen JPY=, pulling ahead from Tuesday's low of 109.170 reached amid a slide in Japanese shares. The greenback edged back closer to 110.590 yen, a three-week peak scaled last week.
New U.S. single-family home sales recorded their biggest gain in 24 years in April, touching a more than eight-year high as purchases increased broadly, a sign of growing confidence in the economy's prospects.
Tuesday's report from the Commerce Department, which also showed a surge in new home prices to a record high, offered further evidence of a pick-up in economic growth that could allow the Federal Reserve to raise interest rates soon.
Crude oil prices pushed closer to $50 per barrel as traders anticipate a drawdown in domestic inventories. The American Petroleum Institute (API) is expected to announce a decline in U.S. crude stocks after the bell, but ahead of tomorrow's official report from the U.S. Energy Information Administration. WTI crude prices gained more than 1.2%.
The West Texas Intermediate for July delivery added 54 cents to settle at 48.62 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery increased 26 cents to close at 48.61 dollars a barrel on the London ICE Futures Exchange.
Reference: Money Morning
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