Dollar index extends losses, hits 4-month low

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TOKYO | Tue May 12, 2009 8:31pm EDT

TOKYO May 13 (Reuters) - The dollar index extended its losses and hit a four-month low on Wednesday and the dollar faced renewed selling amid a recent recovery in risk appetite that has curbed safe haven buying of it.

Traders said the dollar also came under pressure due to an opinion article in the Financial Times that touched on the risk of the United States losing its triple A credit rating, and refocused attention on rising U.S. debt issuance.

While the content of the FT article was unsurprising, it helped add to pressure on the dollar, traders said.

The dollar index fell to 81.905 .DXY, the lowest since early January, and the euro hit a seven-week high of $1.3720 on trading platform EBS. (Reporting by Masayuki Kitano)

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