The dollar hit a four-month high against a basket of currencies on Wednesday, bolstered by strong U.S. data and growing expectations that the Federal Reserve may raise rates before the end of the year, Reuters reported. Commerce Department data showed U.S. housing starts surged 4.8 percent, underpinning a theme of strength in the economy. The dollar index, which tracks the currency against a basket of six major rivals, hit a peak of 97.323 in European trade, its highest level since March 10. It was last trading at 97.104, a tad higher on the day. The dollar rose 0.5 percent against the yen to 106.715 yen , its highest level since June 24, when markets were shaken by Britain's surprise vote to exit the European Union. "The dollar is now being supported by rising U.S. rate expectations. The dollar's rise saw the euro fall to $1.10980, its lowest since June 27. The European Central Bank will hold a regular policy meeting on Thursday, its last before an eight-week break. Meanwhile, sterling outperformed, rising 0.5 percent to $1.3175 after a Bank of England survey showed no clear evidence of a slowing of economic activity after last month's Brexit vote.
