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. Last Updated: 07/27/2016

Fresh Wave of Selling Hits Dollar

LONDON -- The dollar endured a fresh wave of selling Wednesday, sinking to a record low against the euro for a second session and clocking a 12-year trough against sterling.

The greenback has been under pressure in recent weeks, rattled by concerns about the massive U.S. current-account deficit and central banks diversifying out of dollars. Analysts said that a surprise monthly rise in German retail sales for October gave investors an excuse to push the euro higher early in European trading, but cautioned that the dollar looked poised for a correction given the recent sharp falls.

"In this environment when the market is focused on dollar weakness, the data provided an opportunity for the euro to head higher," said Marios Maratheftis, foreign exchange strategist at Standard Chartered Bank.

"I see some short-term risks for consolidation or even a brief dollar comeback. As we move to the year-end we could see some profit-taking."

The dollar hit a record low of $1.3335 per euro in early European trading but later trimmed losses to stand at $1.3295 per euro . The dollar fetched 102.90 yen. The pound rose to its highest levels against the dollar since before Britain was ejected from the European exchange rate mechanism in 1992 at $1.9196.

Remarks by European Central Bank President Jean-Claude Trichet on Tuesday suggesting the bank was unlikely to intervene in favor of the dollar also underpinned the single currency.