The dollar gained against the euro on Wednesday after a top Luxembourg's finance minister indicated unease with currency volatility a day after the dollar crossed the $1.60 per euro mark for the first time and oil rose to record highs.

I don't think the way things are developing, finance minister Jean-Claude Junker told reporters today, according to Bloomberg. He indicated that financial markets should pay closer attention to future developments and less on the short term.

The dollar rose to $1.5883 at 4:46 p.m. in New York, from $1.5991 late yesterday after reaching a new record low of $1.6019. The euro dropped to 164.29 yen, from 164.76. The U.S. currency also rose against the yen to 103.44 from 103.02.

Yesterday's new low for the dollar came after European Central Bank governor Christian Noyer said the institution kwill move rates if needed to bring inflation below 2 percent. He later said the comments had been over-interpreted, according to a report.