The dollar recovered some of its recent losses against other major currencies yesterday, following a better than anticipated GDP report balancing poor housing statistics.

The dollar reached a high of £1.3218 against the euro before falling back slightly, rose from $1.9462 to $1.9509 against the pound and traded at ¥116.31, up from ¥116.10.

The bounce followed Commerce Department figures showing that GDP grew 2.2 per cent during the third quarter, following initial expectations of 1.6 per cent.

A second study showed that home sales fell 3.2 per cent in October, the largest since July when sales dropped 9.2 per cent. Analysts said the dollar still had room to fall however.

"Market players are standing by their convictions that the dollar has further to fall," Michael Woolfolk of the Bank of New York told Associated Press.

"Having seen very little profit-taking following the break of $1.30 last Friday, the euro appears poised for further gains against the dollar."