The dollar made an about-turn this week, rebounding from a record low against the euro as the wind was knocked out of oil prices and fears for US financials eased.

The week started badly for the dollar. Oil reached $145 a barrel and global equities shuddered lower as markets soured after reflecting on the US government’s plan to support the country’s ailing mortgage agencies. Traders rushed to sell the dollar, pushing the euro to a record high of $1.6038 on Tuesday.