The euro bounced back from a six-week low on Wednesday following reports that Italy plans to reduce its budget deficit in the coming years gave some respite to the battered currency.

EURUSD climbed 0.35 percent to 1.1585 following its drop to 1.1505 overnight, its lowest since Aug. 21.

The single currency got some support after an Italian newspaper reported that Rome aims to gradually reduce its budget deficit to 2 percent of gross domestic product (GDP) in 2021.

The Italian government, in a tripling of its predecessor's target, had last week set out a deficit goal of 2.4 percent of GDP for the next three years, unnerving markets and prompting criticism from European Commission officials.

The Dow Jones Industrial Average rose to a record high on Tuesday as it rallied for a second day, lifted by gains in Intel and optimism around global trade.

The S&P 500, closed flat, however, at 2,923.43 while the Nasdaq Composite fell half a percent to 7,999.55 as large-cap tech names fell more than 1 percent.

Cable was 0.1 percent lower at 1.2995 after slipping on Tuesday to 1.2941, its weakest since Sept. 10, as conflicts over Prime Minister Theresa May's Brexit plan escalated.