The dollar index dropped to its lowest level in one-year (against the basket of currencies) on Wednesday, the main reason, the new optimism about global economy finished the greenback's safe-haven appearance. Official data this week have helped to improve investor optimism about the expected economic recovery, lighting a fire under world stocks and weakening the U.S. dollar.

U.S. stocks increased as industrial production reinforced hopes about the economic recovery. It improved risk appetite and pushed higher-yielding currencies, mainly the Australian and New Zealand dollars which increased more than one percent in FX demo accounts.

U.S. industrial output advanced for a second consecutive month in August, while higher gasoline costs pushed up consumer prices, although economists said the risk of inflation remained low.

The Canadian dollar flew to a six-week high against the U.S. currency on Wednesday due to global risk appetite growth and commodity prices firmed, the main determinants of this currency.