Dec 14 (Reuters) - The euro and sterling hit a three-week high against the dollar on Tuesday, extending gains on reported Asian sovereign buying of euros and as the U.S. currency lost more ground on worries about U.S. finances.
The euro rose 0.5 percent on the day to $1.3462 EUR=, with stop loss orders reportedly triggered at $1.3450-60, traders said. It also hit a three-week high versus the yen EURJPY=R of 112.21 yen, according to Reuters data.
Sterling GBP=D4 rose as high as $1.5906, its highest since Nov. 23, helped by an unexpected improvement in house prices.
The dollar hit a three-week low against a basket of currencies .DXY of 79.013.
