By Saqib Iqbal Ahmed NEW YORK, Jan 28 (Reuters) - The dollar rose against a basket of currencies on Wednesday, rebounding from a four-year low touched in the prior session, after Treasury Secretary Scott Bessent reaffirmed the United States' preference for a strong dollar.

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The European economy recorded modest growth at the end of last year, pushing past turmoil over higher U.S. tariffs.

The euro has surged past the $1.20 mark against the US dollar for the first time since 2021, driven by a weakening greenback, European fiscal stimulus and shifting global sentiment. Here’s what’s powe

The EUR/USD exchange rate retreated sharply as market participants reacted to the rising odds that Kevin Warsh will become the next Fed Chair

Europe wants to embrace a beefed-up role for the euro in world finance but gets anxious when that success pushes the currency higher. If the dollar is indeed shaping up for another protracted slide, the bloc faces the flipside of a dilemma Washington is trying to shake off.

The dollar will rebound at times, but Bank of America (BoA) expects the currency will lose further ground during the year as yield support is eroded further. BoA forecasts that EUR/USD will strengthen to 1.22 at the end of this year with a further advance to 1.25 at the end of 2027.

The euro to dollar exchange rate (EUR/USD) is forecast to trade at higher levels over the year ahead, but a new institutional survey shows banks have scaled back their optimism. Aggregated data from over 30 investment banks shows a more cautious outlook, even as the overall profile for EUR/USD remains higher relative to current market conditions.

The dollar remained on shaky ground, as uncertainty over U.S. ⁠economic policies and geopolitical moves was only partially offset by supportive comments from the White House and European officials.

The Euro posts moderate losses on Friday, trading at 1.1920 at the time of writing, as the US Dollar picks up amid speculation that Warsh will be the next Federal Reserve (Fed) Chairman and hopes that the government shutdown can be avoided.