Dollar makes gains against euro

The dollar has had a torrid time over the past three months

The dollar has recovered ground from recent record lows in a busy day on the currency exchanges.

Against the euro it strengthened to $1.333, compared to the low of $1.346 it hit on Tuesday.

The dollar's recovery is not however too significant, as currency analysts said it was mainly correcting itself after recent excessive lows.

The long-term position of the dollar remains weak due to the US's giant trade and budget deficits.

European concern

All position-squaring, nothing fundamental," said Jason Daw, senior foreign exchange strategist with Merrill Lynch in New York.

"Everyone was worried about a correction and here it is

"I wouldn't be surprised if this correction went another day."

Earlier this week the European Union called on Washington to take action to try to strengthen the dollar, saying the excessively high value of the euro was starting to hurt European exports to the US.