The dollar has jumped more than 5 per cent against the euro since the start of August, putting it on course for its largest monthly gain since the creation of the single currency in 1999.

The resurgence represents a dramatic about turn for a currency that just last month hit a record low of $1.6038 against the euro. It has also risen nearly 2 per cent against the yen this month, and more than 7 per cent against sterling.